Glencore has decided not to accept the federal government’s AU$35 million grant to build a giant renewable power and battery hub for its Australian nickel mine and refinery, saying it can’t justify the costs on an asset losing money, according to a report from The Australian Financial Review.
Glencore walked away from the grant for its Murrin Murrin mine in Western Australia and halted plans for the clean energy hub.
A spokesman for the company said: “Following detailed studies into the feasibility of constructing a hybrid renewable energy (solar and wind) project onsite, we have made the decision to halt the project based on a range of macroeconomic and cost factors.”
The company will focus on maintaining existing operations, including reducing costs and increasing efficiencies.
“We will continue to assess opportunities to transition to renewable energy at Murrin Murrin as and when market conditions have improved,” according to the company’s spokesman.
Glencore’s decision follows BHP’s own decision to decline government support when shutting down its nickel division in 2024.
In 2023, the federal government launched a campaign to urge buyers to consider paying more for nickel that was produced sustainably.
Glencore has no plans to shut down the Murrin Murrin mine, according to statements from CEO Gary Nagle in August.
