Glencore’s Mount Isa smelter faces closure as federal rescue bid stalls

While the Queensland government says it has offered 'responsible support' to save vital mining operations, Canberra's silence threatens thousands of jobs across the state's north.

The Federal Government has not offered support to save Mount Isa Copper Smelter and Townsville Refinery, despite mounting pressure that 17,000 jobs at risk as Glencore prepares to mothball both operations.

The Crisafulli Government has tabled what it describes as a “responsible offer of support,” but in its latest statement the Swiss mining giant made clear that it would not be enough to bridge the “quite significant economic gap” threatening the facilities’ future.

A spokeswoman for Glencore acknowledged receiving “further detail” about Queensland’s offer and expressed gratitude for the assistance, but emphasised that “bridging the economic gap will require support from both Queensland and Federal governments.”

“At present we don’t have anything on the table from the Federal Government but we look forward to engaging further with Minister Ayres in the coming weeks,” the spokeswoman said.

Minister for Natural Resources and Mines Dale Last has ramped up pressure on Canberra, declaring “the Federal Government must now come to the table and do its share to protect jobs in North Queensland.”

In a statement issued Wednesday morning, Mr Last emphasised his government’s commitment to “securing the ongoing operations” because “we back the workers, businesses and communities that rely on them.”

“The Queensland Government has tabled a responsible offer of support to help protect local jobs and ensure the long-term future of these critical operations,” his statement said.

“The Federal Government must now come to the table and do its share to protect jobs in North Queensland.”

Townsville Enterprise chief executive Claudia Brumme-Smith and Mount Isa Copper Smelter general manager Adam Purkis touring Mount Isa copper smelter. Picture: Supplied.

It comes as Mount Isa’s mayor Peta MacRae issued her most direct plea yet to government, arguing the North West resources sector has delivered a “whopping $15 billion to state and federal coffers in the past decade alone” and it was time to “return the favour.”

The company has been warning for five months that it would not be willing to shoulder tens of millions of dollars in losses indefinitely but urgency intensified last week after The Townsville Bulletin reported that Glencore has begun preparations to place both assets into care and maintenance, following months of warnings about their economic viability.

The potential closure would be devastating for regional Queensland, with the operations supporting not just direct employment but thousands of indirect jobs across supply chains and local businesses.

The copper industry has faced mounting pressure from declining commodity prices, rising operational costs, and international competition, leaving several Australian operations struggling for viability.

With Glencore reviewing Queensland’s offer while preparing contingency plans, the window for a co-ordinated government rescue package appears to be narrowing rapidly.

Federal manufacturing minister Senator Tim Ayre has been contacted for comment.

Originally published as Glencore’s Mount Isa smelter faces closure as federal rescue bid stalls