Premier David Crisafulli says Glencore must keep smelter open despite losses

Premier David Crisafulli has made his position on Glencore very clear, suggesting it should be ‘pleased’ with its earnings.

Premier David Crisafulli believes Glencore should keep operating in North Queensland at a loss, and put the onus on the Swiss resources company to support workers who fear they may soon be out of a job.

Glencore last week revealed that it would be putting Mount Isa and Townsville operations into care and maintenance soon if government support didn’t become available.

This comes after the state government offered support that Glencore has says fell “well short” of what it needed to keep more thousands of people in jobs.

The closure of the refinery and smelter could mean more that 17,000 people are out of work across North and North West Queensland, leaving an 18 per cent unemployment rate – which is worse than after the Queensland Nickel closure.

The state government has stood firm, saying it put a reasonable offer on the table.

It’s understood the government offered Glencore various financial incentives, including a payroll tax deferral, to stave off closure.

“They’ve got a responsibility to give little back because that company, they’re not on the bones of their backside,” Mr Crisafulli said.

“They’re going OK.”

The Premier said he was concerned about the workers who remained unsure about their future in the copper industry.

“I think long term, the future of copper and the future of refining in this country is strong,” Mr Crisafulli said.

“The copper price at the moment is at historic lows, but all the indicators are that ti’s going to head in the right direction.

“I think there is a desire from most Australians for us to maintain refining and smelting operations in the state and in the country.”

He said the state and federal governments needed to assist but Glencore needed to “show some faith” to Queensland.

“I think the profits from Glencore, most companies would be pretty pleased with them,” Mr Crisafulli said.

“Ultimately, they do very, very well out of mining in this state.”

In an email to staff last week, Glencore interim chief operating officer Tony Wilson wrote that the company had been absorbing losses to date.

“However, we are fast reaching the point at which Glencore cannot continue to absorb these losses,” he said.

In parliament last week, federal Industry Minister Tim Ayres said he was working in close co-operation with the state government and state Resources Minister Dale Last to engage with Glencore.

“I did meet with representatives of Glencore again today, and have been closely co-ordinating … about the approach that the Queensland Government has taken to that set of issues,” Senator Ayres said.

“(We’re) very conscious of the importance of that facility – for Mount Isa, for the region, for the copper industry, for the facilities that rely upon it, for the Queensland economy, and for Australia’s broader strategic and economic resilience – national interest.”

Originally published as Premier David Crisafulli says Glencore must keep smelter open despite losses