Glencore has secured a support package from Australia worth up to A$600mn ($394mn) to continue operating its Mount Isa copper smelter and Townsville copper refinery for the next three years. The package from the federal and Queensland governments is contingent on the completion of a transformation study to further develop industry in the Mount Isa region and other review points. Glencore Metals Australia interim chief operating officer Troy Wilson said on Wednesday that the company had absorbed significant losses to maintain operations while working on a government solution. “Copper is a critical metal for the future, competition in the global copper smelting market is fierce and it’s not a level playing field with various countries seeking to secure substantial market positions,” said Wilson. The Mount Isa smelter provides half of Australia’s copper smelting capacity and is the only facility in the country that treats products from local and regional mines as well as across Australia, according to Glencore and the Australian government. The Australia support package comes as western countries seek to diversify their supply chains away from China, which dominates the refining and supply of rare earths and certain critical minerals. Recommended Mining Australia bails out Trafigura smelters as it seeks to secure critical minerals Tim Ayres, minister for industry and innovation and minister for science in the Albanese government, said copper was critical for building solar panels, wind turbines and energy storage systems. “This investment strengthens our supply chains and supports Australia’s transition to net zero,” said Ayres. “If Australia didn’t already have established facilities like the Mount Isa copper smelter, we’d be looking to build them to protect Australia’s industrial capacity, and strengthen the capability needed for the future.” The government said the support package would protect 600 direct jobs and a further 500 jobs at the nearby Phosphate Hill fertiliser plant and mine. Glencore said the facilities were strategic “national assets” that underpinned the copper supply chain across Queensland and Australia’s critical minerals strategy. The company said its Queensland metals operations have been an economic anchor for the state’s “pit-to-port copper, zinc, lead and silver supply chain”. Earlier this year, Australia’s government bailed out Trafigura’s lead and zinc smelters to stave off their collapse.
Glencore secures $394mn from Australia to keep copper smelter operational
