Federal government urged to take over copper smelter negotiations with Glencore

Queensland treasurer David Janetzki said the closure of the state copper smelter and refinery would national disgrace, demanding the federal government come to the negotiating table with a convincing proposal for the operations Swiss-owner to keep the lights on.

Queensland Treasurer David Janetzki with Townsville Enterprise chief executive Claudia Brumme-Smith.

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Queensland Treasurer David Janetzki said the closure of the state copper smelter and refinery would be a national disgrace, demanding the federal government come to the negotiating table with a convincing proposal for the operation’s Swiss-owner to keep the lights on.

Mining giant Glencore has flagged its intention to shut down its Mount Isa smelter and Townsville refinery in the coming weeks should the government not step in to bolster the economic viability of the sites, which are forecast to operate at a loss of $2.2bn over the next seven years.

The Crisafulli Liberal National government has initially led negotiations and made a first and final offer to Glencore on Monday, which included a suite of indirect financial incentives, including payroll tax concessions. Mr Janetzki said the federal government must now take on a larger role in discussions, to protect the hundreds of jobs at risk and secure the future of northern Australia’s largest inland city

“The state government has put a genuine and responsible offer on the table,” Mr Janetzki said. “It would be national disgrace if the federal government and Glencore were not at the table, working to negotiate here.

“We want to see the federal government play a constructive role, and they must be at the negotiating table. “

Natural Resources Minister Tim Ayers.

The Queensland government has refused to write Glencore a blank cheque after the company returned $3.35bn to its shareholders in recent months.

Federal Minister for Natural Resources Tim Ayers spoke with Glencore about its copper operation on Thursday, confirming during question time he’d had “at least two” other meetings with the multinational.

He refused to say whether the federal government would ramp up negotiations. “We are very focused not on pointing fingers at state governments, but at working in co-operation,” he said. “They (the Queensland government) have been very engaged … with Glencore.”

The federal government is to hold a roundtable next month with mining industry and union representatives to discuss the future of Australia’s struggling metals smelters to lock in the future of mineral resources by driving long-term investment and productivity growth.

It is understood Glencore has been invited to attend.

Mr Janetzki said a deal with Glencore must be struck before the Albanese Labor government focuses on a long-term industry-wide solution. “We know that no matter where smelters are, they are under economic pressure,” he said.