General News
8 October, 2025
Glencore to receive $600m for copper smelter, refinery
The state and federal government deal lasts three years and shores up the supply chain, pending a review.
Glencore will receive $600 million over the next three years to keep the Mount Isa Copper Smelter and Townsville Refinery operational, it was announced this morning.
The money will be split 50-50 between the state and federal governments and $400 million is guaranteed over the next two years, with funding in the third year dependent on meeting criteria.
Making the announcement in Mount Isa were Tim Ayres, the federal Minister for Industry, and Dale Last, the state Minister for Resources, who stood alongside Glencore Metals Australia interim chief operating officer Troy Wilson.
“I just want to say a couple of things about this arrangement to secure the future of this vital regional Queensland and national asset,” said Senator Ayres.
“While capital is being provided by the Commonwealth and Queensland governments on a 50-50 basis, it is also Glencore's responsibility to run the facility over the course of that period and Glencore will continue to experience some losses over the course of that agreement.
“But this is an investment in the future industrial capability of the North West (Minerals) Province in Queensland.
“The people behind me here are the real heroes of this story. (They are) working really hard in this vital national Outback industrial facility that produces copper for Australia and the world.
“I just want to put on the record my gratitude and the Commonwealth government's gratitude to the way that we've worked with Minister Dale Last and Premier Crisafulli in the Queensland government.
“These kinds of arrangements take a focus on what is in the state and national interest, and in the commercial interest of the company, and a focus on working together in a partnership to achieve the right outcome.
“I know that for the people of Mount Isa and Townsville and communities like Cloncurry who rely upon this facility this has been an agonising wait, a period of uncertainty, and we have worked together assiduously and carefully in the national interest and the Queensland interest to make sure that we deliver an arrangement that delivers for this facility, that delivers for Australian manufacturing and delivers for Australia and Queensland.”
Mr Last praised the resilience of the Mount Isa community, recognising it had been a hard time for locals in recent years.
“This is a proud community. People who live out here, they're tough. They're tough people, they're resilient, they're working in a pretty harsh environment, but they're proud,” he said.
“They're proud to live in the North West and proud to be able to work at this facility.
“Today we're delivering on a commitment that's been forged over many, many months – over many long hours of negotiations.
“I want to acknowledge the teams at both state and federal level and, of course, the Glencore staff who worked many, many weekends and many, many long hours to pull together these heads of agreement, which we hope to have executed by the end of this month.
“An agreement, as (Minister Ayres) said, of two years plus one. We were adamant from day one that the Queensland government's commitment here, the funding commitment from the Queensland government, would go into the upgrades, the new capital equipment that's needed for the continued operation of this smelter here at Mount Isa.
“That'll be great news, I know, for the workers behind me, that you've got some new capital spend happening, some upgrades, some new facilities that are about to come online, because we want to grow this sector.
“This particular smelter is producing half the copper produced in Australia. This smelter is pivotal, not just to Mount Isa and the North West, but Incitec Pivot’s fertiliser plant (at Phosphate Hill) and the copper refinery in Townsville.”
The support package, which will commence in the coming weeks, will see funding provided quarterly to Glencore.
Additional funding in the third year – and potentially beyond – is contingent on the completion of a transformation study, alongside other review points.
The transformation study will focus on driving sustainable and long-term industrial capability in Mount Isa.
It will evaluate the end-to-end copper value chain in the region and seek to understand the long-term opportunity for the facilities, industry and Mount Isa workers beyond the support period, positioning the region for a more diverse and resilient future.
Mount Isa mayor Peta MacRae said it was a “great day for Mount Isa”.
“Not only for the workers at Glencore, but also for anyone who owns a property between Mount Isa and Townsville and also for all of our small business community,” she said.
“The smelter is the backbone of our economy.”
Mr Wilson welcomed the funding on behalf of Glencore and thanked the advocacy of Mount Isa City Council and Townsville Enterprise for their support of the copper smelter.
“Over the last 20 years, Glencore's operations have been a centrepiece to the copper and zinc supply chain,” he said.
“Our smelter is the only smelter in Australia that can treat materials from other mines from across the region and from across Australia.
“Copper is a critical metal for the future. The competition in the global smelting market is fierce and it's not a level playing field.
“It's not a level playing field with countries trying to take strategic positions in the market. We support the government's push to develop policies that protect Australia's metal manufacturing sector and also to create affordable and reliable energy.
“This is important and significant to the Australian national economic interests.
"But let me be very clear, Glencore has invested heavily into this region for a long period of time and will continue to do so.
“In the future, we see investments of over $2.5 billion in the North West Precinct.
“On behalf of Glencore and our workforce, I'd like to thank the Australian and Queensland governments for getting behind the region and supporting these assets and providing this lifeline.
“In particular, I'd like to thank our workforce who have been very consistent in their support and shown high levels of resilience over the past eight months. It's really been quite significant.”