Glencore’s Mount Isa copper smelter in Queensland faces imminent closure, with the company declaring the operation unsustainable and appealing for urgent support from both state and federal governments.
The closure, scheduled for next month, threatens to disrupt regional economies and undermine Australia’s sovereign industrial capability.
The UK-based mining giant cited a confluence of challenges making the smelter unviable: “A combination of unprecedented smelting market conditions, high costs like energy, gas and labour, and a shortage of copper concentrates is currently making the Mount Isa copper smelter unviable,” Glencore stated.
The Mount Isa facility is a critical hub for Queensland’s economy, underpinning thousands of jobs and supporting vital infrastructure such as the Mount Isa to Townsville rail line and the Port of Townsville.
Its closure would not only jeopardise local employment but also threaten supply chains and downstream industries that rely on domestically processed copper.
On Friday, senior government officials, including Australia’s Industry and Science Minister Tim Ayres and Queensland Resources Minister Dale Last, visited the smelter to discuss possible solutions.
Both levels of government are actively engaged in talks with Glencore to avert the shutdown.
Minister Ayres emphasised the national significance of the operation: “The Australian government is closely monitoring the situation at the Mount Isa copper smelter and we are committed to working with the Queensland government on the best path forward.
“As a vital industrial site for the Mount Isa community and the broader region, any closure of the Mount Isa copper smelter would have a detrimental impact on Australia’s sovereign capability and other facilities downstream that rely on the smelter.”
Glencore has put forward a proposal to preserve both the smelter and refinery.
Troy Wilson, chief operating officer of Glencore’s Australian metals business, said: “We want to continue operating the smelter and refinery and look forward to hearing feedback from both federal and Queensland governments on a possible way forward.”
The company is also streamlining its global operations, recently announcing plans to merge its newly acquired Canadian coal mines into a single division managed from Australia, following its $6.9 billion purchase of steelmaking coal properties from Teck Resources.
As negotiations continue, the future of the Mount Isa smelter remains uncertain, with its fate carrying significant implications for regional employment, national supply chains, and Australia’s ability to process critical minerals domestically.
