LNP offers secret perks to keep Mt Isa copper smelter open

Global mining giant Glencore has been offered several secretive financial incentives by the Crisafulli government to save hundreds of jobs after the firm threatened to close its Mount Isa copper smelter.

Hundreds of jobs would be in the firing line if Swiss giant Glencore closed its Mount Isa copper operations. Picture: Glencore

You can now listen to The Australian's articles. Give us your feedback.

You can now listen to The Australian's articles.

Global mining giant Glencore has been offered several secretive ­financial incentives, including a deferral of payroll tax for its workforce, by the Crisafulli government to save hundreds of jobs after the Swiss-based corporation threatened to close its Mount Isa copper smelter.

The Queensland government held closed-door talks with Glencore executives, during which a ­series of indirect financial support options were put forward to ensure the site does not close earlier than planned.

It is understood the state government has refused a direct cash injection to lock in the future of the site, which would include a complete “rebrick” of the smelter that is required every three to four years to maintain the operation.

Sources have told The Aus­tralian that the deferral of some taxes, including payroll tax, was put forward. However, the government has publicly ruled out any ­financial relief or deferral on the company’s royalties paid by the company.

Glencore took over the mining precinct at Mount Isa in 2013 and has received significant financial support from the Queensland government since then. The former Palaszczuk Labor government funded the cost of the previous 2022 rebrick of the smelter, at a ­rumoured $20m.

A spokesman for Natural Resources and Mines Minister Dale Last would not detail the specifics of Monday’s offer as discussions were commercial in confidence.

In a statement, Mr Last said the Crisafulli government was committed to protecting the state’s resources sector, with 500 jobs on the line in Mount Isa if copper ­operations were to cease.

“Our focus is on delivering for the hardworking Queenslanders whose livelihoods depend on these operations – the workers, suppliers, contractors and local businesses,” Mr Last said.

“We are also working constructively with the federal government to address cost pressures imposed by commonwealth policy, which Glencore has identified as a barrier to its ongoing operations in north and northwest Queensland.

“These discussions are constructive and ongoing, and we are continuing to work closely with local leaders and industry to secure new investment into north and northwest Queensland.”

Glencore was contacted following the meeting but declined to comment on the talks.

The closure of the copper mine operations, which has been the backbone of Mount Isa’s resources industry for more than 60 years, was flagged by Glencore back in October 2023 after it was deemed no longer “economically viable”.

The mining giant claims to lose an estimated $30m a month on it’s copper smelter and associated refinery in Townsville, and cannot proceed without substantial government assistance. Earlier this year, it reportedly asked for a $2bn government bailout.

The Mount Isa smelter is one of just two copper smelters operating in Australia and the only one that processes ore from other miners.

In May, Premier David Crisafulli said he had met with Glencore executives after their calls for financial assistance. At the time, Mr Crisafulli said he had told executives “how much we want to see them invest in a region that’s been good to them”.

“The future of that smelter is so huge for everything that relies on it,” he told reporters.

“So there’s a number of approvals and a number of projects that I’m pretty confident are going to get over the line in the next two to three years.

“We have to find a way to make sure that there’s confidence for people to invest in the north and northwest.”