NQ copper industry needs changes to energy, freight networks, operating models

Stifled by rising energy prices, stretched freight networks, and outdated operating models, NQ’s copper industry needs dramatic changes to succeed. See the latest doco episode.

North Queensland’s copper supply chain is being stifled by rising energy prices, stretched freight networks, and outdated operating models, as the fight continues for a government intervention to keep key pieces of infrastructure operating.

All eyes are on Swiss mining giant Glencore, which confirmed a decision would be made in the next month whether to close its Mount Isa copper smelter and Townsville copper refinery, in addition to its Mount Isa Mines underground copper operation.

With an estimated 17,000 jobs hanging in the balance across North Queensland, Townsville Enterprise’s five-part documentary series “Keep Our Copper” has driven home the importance of supporting the industry to unlock future prosperity, despite economic headwinds from China.

In its fourth episode, TEL has explored how we could go surviving to thriving – the game changers to fuel our region’s copper revival – where cheap energy and upgraded transport infrastructure were key priorities.

Mount Isa to Townsville Economic Development Zone (Mitez) chief executive Maria James said power was the biggest input in all of the North West’s mining operations, which needed “affordable, reliable, consistent and clean energy”.

Mount Isa Copper Smelter general manager Adam Purkis said the cost of manufacturing was high due to labour and power energy costs.

“The fundamentals of energy, rail, freight, access and cost need to support that sort of mining program, but as a long term potential, the smelter still has that potential,” Mr Purkis said.

Harmony Gold (Eva Copper Mine) chief development officer Johannes Van Heerden said they wanted to connect to the CopperString project to meet the mine’s power needs, and they were seeking clarity about timelines and electricity pricing.

NQ's copper supply chain. Picture: TEL.

Traeger MP Robbie Katter acknowledged that there was good existing transport infrastructure in place, like the Townsville to Mount Isa rail line, but there was room for improvement.

“It does need intervention at some certain points, because the things that you’ve set up now, the way you’re managing the rail, the shortfall in energy infrastructure, and some of those other policy settings are not working,” Mr Katter said.

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

Townsville Enterprise chief executive Claudia Brumme-Smith said with the right policy environment around energy, logistics, input costs and common user infrastructure, NQ’s copper supply chain could thrive into the future.

“To compete internationally, we must confront the pressures holding the industry back from high energy costs to inadequate freight and supply chain links … investments in energy and transport infrastructure are no longer optional.” Ms Brumme-Smith said.

“A new operating model is needed to facilitate smaller mines, more common user facilities, less red and green tape, to fast track new and existing mines to grow.”

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

Keep our Copper docuseries

• Episode 1: Why the Smelter Matters: The cornerstone of Australia’s copper supply chain

• Episode 2: Unearthed Potential: Mining the Demand Boom

• Episode 3: Townsville’s Refinery Reckoning: will we take our copper to the world?

• Episode 4: From Surviving to Thriving: the game changers to fuel our region’s copper revival

• Episode 5: The Chain Reaction: Why Farmers are fearing the Smelter closure

Originally published as NQ copper industry needs changes to energy, freight networks, operating models