Imminent smelter rescue package raises hopes for NQ’s ailing copper industry

As the federal government works on rescue plans for metal smelters in Tasmania and South Australia, hopes are high for saving NQ’s copper industry. Find out why.

A federal rescue of two southern metal smelters could provide a blueprint for how to save Glencore’s copper operations in North Queensland, with advocates urging the Albanese government not to abandon the region.

While in Hobart on Tuesday, Prime Minister Anthony Albanese confirmed an imminent rescue package for two ageing Nyrstar smelters – Hobart’s zinc refinery and its lead smelter in Port Pirie, South Australia.

Owned by Singapore-based multinational Trafigura, Nyrstar had warned both interrelated smelters were “touch and go” financially, placing 1500 jobs at risk.

“These manufacturing facilities are really important for our national interest and that’s why we’re working with the company, with state and territory governments as well,” Mr Albanese said.

“(A rescue plan) is very close … I would hope that there would be an announcement soon.”

Nyrstar had argued the smelters were no longer able to compete with subsidised Chinese production – a complaint echoed by Swiss mining giant Glencore regarding its copper processing assets in NQ, as it pushes for a governmental financial intervention.

A spokeswoman for Minister for Industry and Innovations, Senator Tim Ayres, said the Queensland Government had their full support to continue leading engagement with Glencore.

Industry and Science Minister Tim Ayres at Oxycut steal manufacturing in Smithfield. Picture Thomas Lisson

“The Commonwealth is working closely with Queensland to ensure we have the domestic capability required to advance Australia’s economic security and resilience, consistent with our Future Made in Australia agenda,” the spokeswoman said.

“The Australian Government acknowledges the ongoing sustainability challenges facing Australia’s smelters. Each facility presents unique circumstances that require tailored assessments and solutions.”

Dale Last Queensland resources and Mines Minister

Queensland’s Minister for Natural Resources and Mines Dale Last said the Mount Isa copper smelter and Townsville refinery were vital parts of the national economy and supported the viability of nationally significant supply chain infrastructure.

“The Crisafulli Government is engaging closely with the Federal Government and Glencore, and these discussions are ongoing,” Mr Last said.

Fiercely advocating for NQ’s copper industry through the Keep Our Copper campaign, Townsville Enterprise chief executive Claudia Brumme-Smith said it was positive to see the federal government taking steps to secure smelters in other states – but Queensland must not be left behind.

Townsville Enterprise CEO Claudia Brumme-Smith tours a copper processing facility. Picture: Supplied.

“It’s time for a deal – a joint solution between all levels of government and Glencore to keep our copper in North Queensland is essential and urgent. We need to keep these facilities open so emerging miners scale up and secure long-term viability of our processing assets,” Ms Brumme-Smith said.

“The decision to shut these facilities will cost 17,000 jobs, cripple Townsville and North Queensland’s economy, and hand control of a strategic resource to foreign interests – at a time when copper demand is growing at a rapid rate.

What's at stake for NQ's copper supply chain. Picture: TEL.

“The future of these facilities now rests on urgent collaboration between government and industry. It’s not just about one company – it’s about the future of Queensland’s jobs, regional communities, and our sovereign capability.”

Given that Mount Isa’s smelter and Townsville’s refinery were the nation’s only third-party copper processing facilities, she said a closure could break a critical link in Australia’s manufacturing and clean energy supply chain.

“For over a century, the Mount Isa Mine, its smelter and refinery, and the surrounding communities have powered the State and national economy … (and) for the first time, these communities are asking for a temporary hand up to secure their future,” she said.

“Townsville Enterprise, alongside our regional mayors and communities will continue to stand strong until a solution is found and we will be taking our calls to Keep our Copper in North Queensland directly to federal parliament at the end of this month.”

For more information, visit: www.keepourcopper.com.au.

Originally published as Imminent smelter rescue package raises hopes for NQ’s ailing copper industry