General News
2 July, 2025
Don't provide a $2 billion bailout, says Katter
The MP wants the government to look at alternative options before handing over a cheque.
Member for Kennedy Bob Katter says that Mount Isa is one of four industrial capitals that is left in Australia and has urged the federal government to support the city without providing a blank cheque.
In a letter to Minister for Industry and Innovation Tim Ayres and Minister for Northern Australia Madeleine King, the veteran MP claimed the closure of the Mount Isa copper smelter would have a major impact on the North West.
“Glencore is one of the world’s largest mining complexes and has proclaimed its Mount Isa copper and zinc operations as Australia’s biggest industrial asset,” he wrote.
“However, it has closed its copper mine and is threatening to close the copper smelter unless it receives a $2 billion government bailout.
“If the smelter is allowed to close it will effectively result in the complete cessation of copper mining in North West Queensland’s mineral province – a loss to the Australian economy of over $2 billion per year.
“Following significant high-level discussions, I do believe that there is a positive way forward that does not require a government bailout.”
Mr Katter said there were two critical measures that could be taken by the federal government.
“One, a reserve resource policy must urgently be delivered that would provide gas to Mount Isa industries at $6 per unit,” he wrote.
“And two, Glencore must be advised that the Mount Isa Copper Operations must either be:
a) sold;
b) worked; or
c) rehabilitated (at a cost of more than $700 million).
“Similar ‘use it or lose it’ and ‘reserve resource’ policies have been applied throughout Australia’s history and are generally explored and implemented prior to more direct measures of government assistance.
“It does appear to be a rather brazen request that a government would subsidise a company but receive little in return.
“Indeed, if the copper smelter and mine genuinely need government assistance, then Glencore must sell control – majority ownership to a government authority or one of the many willing buyers who are interested in partial or full ownership and operation.”
In the same letter, Mr Katter also spoke of the delayed CopperString project and the need to ensure the transmission line is completed as first announced.
“The completion of CopperString, linking Mount Isa to Townsville through the North West Minerals Province will bring significant and pro-longed economic benefit for the entire country,” the MP wrote.
“Including, but far from restricted to, the bringing online of four giant vanadium mines and Eva Copper Mine.
“Just these five proposals alone have the potential to inject a further $1.2 billion each year into the Australian economy.
“Urgent action is needed.”