KAP, Mount Isa Mayor warn of devastating side-effects if Glencore solution not found

The KAP, and local officials, are demanding government go to unorthodox lengths to stave off what they say could spark a collapse of the NQ economy.

Member for Traegar Robbie Katter at the Breakwater at Ross Creek near the Townsville Port. Picture: Evan Morgan

Mount Isa’s copper smelter and Townsville refinery that underpin Queensland’s $680bn minerals industry could shut as early as September, triggering what local leaders warn would be an “economic collapse” across the north.

The Katter’s Australian Party is now demanding the state government broker a deal with mining giant Glencore to buy the operations, warning that 17,000 jobs and the region’s economic sovereignty hang in the balance.

It comes after Glencore asked the state government for a $2bn lifeline to keep its Mount Isa and Townsville refinery operations open.

It is understood Premier David Crisafulli and Resources Minister Dale Last met with Glencore chief executive Gary Nagle on May 20 to begin negotiations.

Traeger MP Robbie Katter, flanked by his father and KAP Leader Bob Katter and Mount Isa Mayor Peta MacRae, on Tuesday demanded the state government “be brave” and take control of the asset instead of bowing to the short-term bail out.

Member for Kennedy Bob Katter, Mt Isa Mayor Peta MacRae and Member for Traegar Robbie Katter at the Breakwater at Ross Creek near the Townsville Port. Picture: Evan Morgan

“The Premier’s got the horsepower and the will to do this,” he said.

“I think the biggest risk from us now is the same advisors and Treasury boffins that have been running this for the last 20 or 30 years get their way and throw some cash at this as a solution.

“I think we all lose under that scenario.”

Political leaders have mere months to strongarm Glencore into a deal, Mr Katter says, after 30 years of complacency.

“We come out of this laughing all the way to the bank, and this will be an economic enabler for the country for the next 100 years,” he said.

Member for Traegar Robbie Katter, Mt Isa Mayor Peta MacRae and Member for Kennedy Bob Katter at the Breakwater at Ross Creek near the Townsville Port. Picture: Evan Morgan

“The return on investment that Australian taxpayers get from anything we do to keep this whole thing alive… will be a small fraction of the stadium upgrades they’re going to do for the Brisbane Olympics.

“You’re talking about $15bn going into the economy every year from here, not to mention national sovereignty.”

The KAP is pushing for a 50/50 ownership split or another hybrid model.

Ms MacRae said Mount Isa was now at “crisis point” and needed a fast solution to save 17,000 jobs between the port and smelter.

“Something needs to be done in the next couple of months, like that could happen as early as September,” she said.

PIRATE: Aerial view of MIM Mt Isa copper mine smelter 15 Sep 1999. mining industry /Industry /Mineral/resources

“That means house values, it means small businesses, it means basically, the collapse of the North Queensland economy.

“I don’t think the Premier and the Prime Minister have the appetite to see the economy of North Queensland collapse.”

Federal Member for Kennedy Bob Katter said the KAP would lobby the re-elected Albanese government for its support.

“I’m very confident that we will get to the Prime Minister as well,” he said.

“But I want to back up very strongly that this is not a handout to a foreign corporation.

“We will assert our sovereignty, and those that don’t, we’ll take their name down because they’re not Australians.”

Senator Nita Green, assistant minister to North Australia told the Townsville Enterprise mining and resources forum that she would be visiting Mount Isa in coming weeks to “take a community led solution back to Canberra”.

She said her government has shown it was willing to work with communities when there was a sovereign risk to industry.

Originally published as KAP, Mount Isa Mayor warn of devastating side-effects if Glencore solution not found