Political solution needed for Glencore's NQ copper facilities facing headwinds
Pressure is mounting to find a political solution to preserve NQ’s copper smelter and refinery and 17,000 jobs before Glencore hit pause. Read about the high-stakes negotiations.
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Prime Minister Anthony Albanese has been lashed for his failure to confront China about its role in disrupting Australia’s metal manufacturing industries during his “panda cuddling trip”, given North Queensland’s copper industry hangs by a thread.
A shockwave has reverberated across North Queensland after Glencore revealed on Wednesday its intention to pause operations at its Mount Isa copper smelter and Townsville refinery until conditions improved.
The Swiss mining giant justified the decision saying the state government’s intervention measures fell “well short” of their modelled losses, which were projected to be $2.2bn over the next seven years.
Speaking from Mount Isa, where he had just toured Glencore’s smelter with Mount Isa Mayor Peta MacRae, Queensland Treasurer David Janetzki acknowledged the staff’s visible uncertainty and emotions, and those of the wider community.
“It’s real and it’s tangible and I strongly believe that Glencore should have more to give back,” Mr Janetzki said.
“Queensland’s been very good to Glencore and Glencore should think carefully about that as they’re considering their way forward.”
He said the state government put a “genuine and responsible offer” on the table and would continue to negotiate in good faith with Glencore and the federal government.
“We know (the federal government) must support the short-term fix while they develop a long-term strategy to address melting pressures across the country,” he said.
Mount Isa Mayor Peta MacRae said their smelter was worthy of the federal government’s support given its Future Made in Australia, northern Australia Action Plan, and Critical Minerals Strategies.
“We understand there needs to be a national strategy but time is running out for our community. Keeping this smelter is vital to the livelihoods of around 17,000 people across our corridor,” Ms MacRae said.
“We don’t think the state or the feds have the appetite for crashing the North Queensland economy so we hope everyone’s going to get in a room and find a solution … everybody needs to work together.
“I’ve met with the treasurer and the premier previously, everybody reassures me that there will be a solution and I trust that that will happen.”
But Queensland Senator Susan McDonald said it was clear the federal government was not taking the issue seriously and that other smelters that had been bailed out, like in Tasmania, were politically motivated given it was during their state election.
“This is not a government that is taking the concerns of the region and, most importantly the workers of Mount Isa seriously and is instead sitting on its hands and watching while our nationally important copper industry and copper region threatened to fail,” Senator McDonald said.
“This is bigger than Glencore. This is the North West minerals province and Australia’s copper industry, which is being threatened by Chinese investment into smelters. The Australian government has the decision as to whether or not they back Australian workers or they back Chinese workers.
“I want to know why the Prime Minister didn’t raise this on his recent panda cuddling trip to China.”
Minister for Industry and Innovation Tim Ayres said in parliament that he was working in close co-operation with the state government and Resources Minister Dale Last to engage with Glencore.
“I did meet with representatives of Glencore again today, and have been closely co-ordinating … about the approach that the Queensland Government has taken to that set of issues,” Senator Ayrers said.
“(We’re) very conscious of the importance of that facility – for Mount Isa, for the region, for the copper industry, for the facilities that rely upon it, for the Queensland economy, and for Australia’s broader strategic and economic resilience – national interest.”
Herbert MP Phillip Thompson said he was terrified for local families.
“With the closure of Yabulu we saw that our city’s economy was destroyed, but also, more importantly, families lost jobs, and people had to leave town,” Mr Thompson said.
“People couldn’t put food on the table, and now, with this happening with Glencore, I am terrified that we’re going to be in the same position, and we must see action from both the state government and the federal government.
“We must have long term plans to fix this, but for the immediate future we’re talking about Townsville families and action is required right now.”
Deputy Premier Jarrod Bleijie put pressure on the federal government to become more involved in protecting workers.
“The Queensland government has put an offer on the table, but it would be a national disgrace if a deal could not be done with the federal government involved in that deal and at the table,” he said.
However, Mr Bleijie also repeated his demand for Glencore not to abandon the people of regional Queensland.
“This is a multibillion-dollar company that answers to shareholders but Mount Isa and the people of Mount Isa and the North West have been very good to Glencore and Glencore needs to step up and step in,” he said.
Opposition Leader Steven Miles said it was time Premier David Crisafulli “grew up a bit, got in the room” and worked to save the thousands of jobs.
“This reminds me of when the Liberal Party dared the Australian car industry to leave, and they did, and thousands of families got their livelihoods from that industry no longer have those jobs,” he said.
“This is about the 17,000 Queensland families who rely on that industry for their livelihoods.”
Originally published as Political solution needed for Glencore's NQ copper facilities facing headwinds
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