Urgent Glencore issue causing ‘anxiety’ across NQ, TEL’s Claudia Brumme-Smith says

The state could be one step closer to reducing copper processing facilities in Queensland after state and federal ministers visited the Mt Isa smelter in recent days.

Mount Isa Mines InfrastructureMount Isa, Copper Smelter

The state could be one step closer to reducing copper processing facilities in Queensland after state and federal ministers visited the Mt Isa smelter.

With Glencore’s copper processing operations in North Queensland – the smelter and the Townsville refinery – currently deemed unviable, high-level discussions about the sovereign risk of losing the ability to manufacture of the mineral between are underway.

Federal Minister for Industry and Innovation and Minister for Science Tim Ayres, Queensland Minister for Resources and Mines Dale Last, and Mount Isa Mayor Peta MacRae visited the Mount Isa copper smelter on Friday.

Glencore sounded the alarm last month that with no reprieve in market conditions in sight it would have to close both operations without government support.
The Townsville Bulletin launched its S.O.S. – Save our smelter and refinery campaign late last month to help shine a spotlight on the devastating impacts the closure would have on North Queensland communities.

Unprecedented smelting market conditions, largely driven by Chinese competitors who are heavily subsidised by their government, leading to significantly lower copper metal production costs, high operational costs, particularly for energy, gas, and labour and a shortage of copper concentrates have all worked to heap pressure on the struggling assets.

Despite the Mount Isa copper smelter and Townsville refinery currently operating at a loss, Glencore’s Chief Operating Officer for Australian metals Troy Wilson said the company’s plan was to find a “regional solution” with government assistance to maintain these “strategic assets”.

Mount Isa Mines. An overview of the copper smelter in 1979.

“Unfortunately, it’s no longer a level playing field with our competitors in China heavily subsidised by government, which means they produce copper metal at much lower cost,” Mr Wilson said.

In a statement the Swiss mining giant also outlined plans for ongoing investment in the George Fisher Mine and the development of the Black Star Open Cut (BSOC) project.

Glencore’s Queensland Metals business reported spending $2.7 billion operating in North Queensland last year, supporting 4,070 jobs and injecting $1.7 billion into local goods and services.

Broader Glencore operations in Queensland provide employment for 8,380 individuals and contribute $9.4 billion to the state in 2024, according to the statement.

Townsville Enterprise CEO Claudia Brumme-Smith said the situation was “an urgent issue” causing “anxiety” within the region.

“We appreciate and thank the Federal Minister for his quick response in visiting the smelter as well as with us here in Townsville,” she said. 

“We were pleased to see the Minister has been fully briefed on the issues and has a good understanding of the complexities, as well as a passion for protecting Australian manufacturing and mining jobs.

“Our message has been clear, this is an urgent issue and the region is anxious – the industry and Government’s need to work together to do what’s needed to Keep our Copper in North Queensland.”

Mr Wilson said Glencore was looking forward to “hearing feedback from both Federal and Queensland Governments on a possible way forward,” Mr Wilson said.

Originally published as Urgent Glencore issue causing ‘anxiety’ across NQ, TEL’s Claudia Brumme-Smith says