Glencore urges Aus support to save Mount Isa smelter

Glencore (LSE: GLEN) has declared its Mount Isa copper smelter unviable and is awaiting a response from Australia’s federal and Queensland’s governments regarding requests for financial assistance to keep the facility running.

The mining and commodities giant blamed “unprecedented smelting market conditions,” high energy, gas and labour costs, and a shortage of copper concentrates for the smelter’s unsustainable position.

Federal Minister for Industry and Innovation and Minister for Science, Tim Ayres, said his office is closely monitoring the situation. But he didn’t outline any specific support measures under consideration.

“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,” he said in a statement after visiting the plant on Friday. 

Closure plans

The Swiss company first announced the closure of its Mount Isa copper mines and associated operations in October 2023. At the time, it said all assets that made up in the complex as well as the Lady Loretta zinc mine, located 140 km northwest of Mount Isa, would close in the second half of 2025.

Glencore initially said the closures would impact more than 1,200 jobs, but in April this year, it revised that estimate to around 500 roles, citing progress in workforce planning.

“We are also actively working to redeploy as many people as possible over the coming months,” Sam Strohmayr, chief operating officer for Glencore’s Australian zinc and copper assets, said then.

Glencore reiterated its hope that authorities will intervene to support continued operation of the smelter and refinery.

Dialogue

Queensland’s Minister for Natural Resources and Mines, Dale Last, stressed the economic importance of the site.

“The Mount Isa copper smelter is a cornerstone of Queensland’s economy and supports the viability of nationally significant supply chain infrastructure like the Mount Isa to Townsville rail line and the Port of Townsville,” he said. “But we can’t make decisions for Glencore. We are continuing to engage in good faith with Glencore, and we expect Glencore to do the same.”

Glencore responded by saying it had maintained regular communication with authorities but has yet to receive any concrete proposal to help sustain operations at Mount Isa.