North Queensland town hit by chain of copper mine closures

Three junior copper mining companies in a North Queensland community have financially collapsed in as many months. The Mayor says this put a dent in jobs and revenue.

Fly In Fly Out mine workers depart from Cloncurry Airport, which is owned by the Cloncurry Shire Council which uses it for revenue. The Mayor expects passenger numbers to drop. Picture: Liam Kidston

Cloncurry’s mayor has warned his region has been impacted by a total 400 jobs after three separate junior copper mines in close succession have financially collapsed within as many months.

Greg Campbell said Copper Resources Australia, True North Copper, and Chinova Resources’ financial difficulties have then punished the local economy, through millions of dollars in debt owed by to about 20 businesses and contractors in the region.

While he said many of the jobs were Fly In, Fly Out and that there were other productive mines in the area such as Evolution and MMG, this would also have an impact on the council’s revenue through the money it made by passenger numbers at its airport.

Mr Campbell said while there had been policy focus on addressing the 1200 Glencore copper mine job losses 120km west in Mount Isa, he believed Cloncurry’s plight was being overlooked.

“And because it’s three separate mines, it’s getting no attention,” Mr Campbell said.

“The workers entitlements are guaranteed through the federal scheme, but small and medium business, there’s nobody looking after them, and they’re the ones that get hurt time and time again.”

Cloncurry Shire Mayor Greg Campbell said his town’s businesses and contractors were hurt by the closure of three junior mines. Credit: Supplied.

Mr Campbell echoes the views of industry advocates that the viability of juniors investing in the critical minerals space within the region needed investigation, especially if governments sought to supply the minerals needed in an international renewable energy transition.

“When we keep getting told that we need so much more copper over the next decade for our decarbonised future, why is there still this weakness in junior miners, where there’s a proven resource.

“Why is it so tough for junior copper miners to be successful?

Businesses in Scarr St in Cloncurry. Picture: Scott Radford-Chisholm

“That would be a question I’d like to understand.”

A Department of Natural Resources and Mines spokesman said the Queensland Government planned on creating “an environment for growth” within the mining industry, and would focus on increasing approval times, and encourage further investment.

The spokesman said on Christmas Eve Queensland’s Coordinator-General announced there would be emphasis on developing a vanadium mine east in Julia Creek through the label of being a ‘co-ordinated project’.

Chinova Resources' Osborne Mine taken by Google Maps' satellite imagery.

The spokesman also observed the latest round of the Collaborative Exploration Initiative had funded 18 projects, many of which were received by copper miners in the North West Minerals Province.

But one of the recent recipients of the scheme had been True North Copper, which went into voluntary administration in October after three months of mining activities at the historic Great Australia Mine 2km south of the town.

KordaMentha was appointed as voluntary administrators and the company was suspended from the ASX, and while it seeks to raise $55m to repay debts and expand on its exploration, it does not intend on continuing production within the next year.

A Google Map satellite picture overlooking Rocklands Copper Mine and True North Copper's Cloncurry Copper Project, formerly the Great Australia Mine, in proximity to Cloncurry.

In September the Osborne copper-gold mine owned by Chinova Resources 100km south of Cloncurry went into receivership, with ABC reporting that it hired 230 workers.

Mr Campbell said jobs were being phased out, and that while the mine itself had matured, there were opportunities to reprocess the tailings, mine cobalt, and expand its operations in the area.

In November Copper Resources Australia, which owns Rocklands Copper Mine 17km north west of Cloncurry, went into administration.

It had taken over the site from collapsed company CuDeco in 2020, and is understood to have affected more than 50 jobs.

Originally published as North Queensland town hit by chain of copper mine closures