Mount Isa mining crisis: 17,000 jobs at risk as major plants face closure

Ramping up his fight to save Mount Isa’s copper and fertiliser industries, Bob Katter has advanced several strategies including a ‘use it or lose it’ ultimatum for corporations. Read his solutions.

After issuing a dire warning about Mount Isa being on the verge of industrial collapse, federal MP Bob Katter has ramped up the pressure on state and federal governments to deploy more weapons in their arsenals to address the crisis.

Highlighting Mount Isa’s importance as Australia’s third-largest industrial centre, Mr Katter is greatly concerned that two of the town’s major operations – Glencore’s copper smelter and Dyno Nobel’s Phosphate Hill fertiliser plant are at risk of closure – endangering up to 17,000 across the region.

“Violently enraged” by the Coalition’s recent push for an inquiry into the metal manufacturing industry, Mr Katter panned the move saying it “absolutely guarantees that nothing will be done, not now or in the future, (and) I can’t believe that anyone could have asked for it”.

“We are on desperation road. The dominoes are falling as I talk (with Mount Isa Mine closing this month).

“Any government worth feeding would not allow (Glencore) to close the copper smelter … when there are 13 mines dependent upon that copper smelter … the government should put up the money by themselves, but there’s a whole raft of people that would buy that copper smelter.”

Prime Minister Anthony Albanese tours Mount Isa mine with Bob Katter MP in August 2023 Picture: PMO via NCA NewsWire

Beyond a government intervention, he wanted the state government to use “two weapons” to crack down on corporations sitting on resource deposits (like Mount Isa Mine’s copper), while preventing others from accessing the resources.

“I have never in my life, in 50 years in parliament, ever heard of a government that allows a foreign mining company or any mining company to sit on massive copper deposits and not use them,” Mr Katter said.

“It’s the biggest dog in the manger you’ve ever seen. The state government (should say) ‘use it or lose it’ and we’re giving you two months to make up your mind.

“If they say they’re not going to use it … you now have to rehabilitate and remediate the site, which costs about $600m.”

Welcoming news of Ernest Henry mine’s new owners recording a record-breaking profit, he slammed former operator Glencore for “spectacular mismanagement” after claiming the mine wasn’t profitable.

“This is a flashing neon light as what I view as the sheer incompetence of Glencore’s operations within this country,” he said.

Federal MP Bob Katter speaks at a Mount Isa forum concerned about Glencore's decision to close its copper operations. He said government could fight against the decision by demanding remediation for the mine's rehabilitation phase. Photo: Chris Burns

This week in Canberra, Mr Katter planned to meet with Prime Minister Anthony Albanese and ministers to apply pressure through copper export licences, and to support metal and fertiliser production by making natural gas cheaper using a reserve resource policy.

“All of the energy required, the electricity and power to produce that copper is coming from gas at absolutely extraordinarily outrageous prices,” he said.

“(Phosphate Hill’s) been up for sale, I would argue for three years. and there’s no buyers (because) two-thirds of the components of fertiliser is natural gas.”

The Phosphate Hill fertiliser plant relies upon the Mount Isa copper smelter for a supply of sulfuric acid. Picture: Supplied.

He said the “big boys on the block”, Russia and the US, were getting their gas for $5 per unit, while Australia was selling natural gas for six cents per unit and buying it back from foreign companies for $16.60.

According to the latest Gas Supply Hub data from the Australian Energy Market Operator, the 30-day rolling average price of natural gas is $13.54 per gigajoule.

Discussions led by the state government are continuing behind the scenes, with Glencore expected to decide on the future of its Mount Isa copper smelter and Townsville refinery within weeks.

Originally published as Mount Isa mining crisis: 17,000 jobs at risk as major plants face closure