General News
15 September, 2025
Glencore preparing to shut smelter following package impasse
The mining company is doing the sums on the closure of the Mount Isa copper smelter and Townsville refinery.
Glencore has started crunching the numbers on layoffs as it prepares to put both the Mount Isa copper smelter and Townsville refinery into care and maintenance.
Sources told North West Weekly that the mining giant had already begun calculating the cost of payouts as a result of the closures.
While Glencore is hoping for an eleventh-hour deal from the federal government that would keep the facilities operating, executives believe the Albanese government has so far been unwilling to make a major long-term commitment.
Federal Minister for Resources and Northern Australia Madeleine King was in the North West last week and told ABC radio that her government, as well as the state, was continuing discussions with Glencore.
“I accept that people are uncertain and that makes them nervous, and I totally understand that,” she said.
“I’m from a town called Kwinana. You know, I lost the Nickel West refinery a couple of years ago, and that caused a great deal of uncertainty in my community. So, it’s not the same as this, but the feeling’s very similar.
“But what I can reassure the community is that we are in very active and constructive discussions with Glencore.”
The Minister noted Prime Minister Anthony Albanese’s previous remarks that Glencore had got a lot out of Australia.
“There’s been some very frank and very hard discussions with Glencore about that, because obviously they’ve got interest in a number of other mines in New South Wales and Queensland," Ms King said.
“We want them to prosper as well. But we do need this copper smelting capability to continue.”
Glencore executive Suresh Vadnagra recently indicated that the copper smelter and refinery were losing tens of millions of dollars each month.
“As you’re aware, the global copper of smelting market has fundamentally changed. This is more than just a temporary downturn, it’s a structural change that reflects China and other countries’ growing influence over global copper supply chains,” he said.
“And it’s happening at a time when energy and labour costs in Australia are higher than ever. It’s not a level playing field, and we just can’t compete with countries like China who receive government support and other benefits.”
Ms King said companies around Australia sometimes hadn’t invested in keeping metal processing facilities modern and up to date as perhaps they should have.
“And I think that’s a crying shame, and I think it’s a deep regret that governments before us haven’t held them to account,” she said.
“But nonetheless, we are in this situation right now, and this federal Government and the Queensland government is working really hard to do all that we can to make sure the people and the communities of Mount Isa and the communities that stretch far from that continue to have a prosperous future.”