General News
9 April, 2025
Government needs to buy stake in smelter: Robbie Katter
The MP wants to transform the smelter into a common user infrastructure asset.
Robbie Katter believes the state government should take an ownership share in the Mount Isa copper smelter as a condition of any rescue package provided to Glencore.
The Traeger MP said there was also a divestment opportunity to transform the smelter into a common user infrastructure asset that was jointly owned by mines across the region.
Mr Katter said Glencore’s approach to the state and federal governments for assistance was an opportunity to stop the nationally important asset remaining in the hands of a single foreign-owned company.
He said the smelter allowed Glencore to hold monopoly power over elements of the North West resource sector and the company should also be expected to increase its financial reporting to government.
“This is probably one time you can actually believe Glencore when they say the smelter is a marginal business for them,” Mr Katter told North West Weekly.
“There is no point just propping up the smelter for another couple of years because then they will just ask for another subsidy down the track. There are a number of things that can’t be fixed in the short term, like if power is an ongoing issue for them, we won’t have that solved unless we get CopperString.
“We shouldn’t just be throwing money at the smelter, we desperately do need it to stay open for the future of the North West, but it shouldn’t all just be on Glencore’s terms.
“If taxpayer money is going to be used to help Glencore, then they should be handing over, at the very least, part of the ownership to either private investors or the government.
“We don’t want Glencore to just hold the government to ransom every couple of years while at the same time they are getting all the benefits from owning the smelter.”
Mr Katter said repeated debate about the long-term future of the smelter was jeopardising investment confidence in the North West, which could be quelled if government took partial ownership of the asset.
“That is a very unhealthy arrangement at the moment,” he said.
“We can’t just keep the smelter open for a couple of years at a time – we need some long-term certainty. Unfortunately, governments get lazy and try to do quick deals and save themselves some political pain.
“But there is a deal to be done here – it is going to be tricky and complicated – but I think that is what is in the best interests of taxpayers and the North West.”
“If there was a divestment of ownership it would mean that miners in the region would have a more positive 10-year outlook rather than the negative Glencore outlook.”
Mr Katter said there should be increased financial reporting requirements placed on Glencore if the state or federal government provided assistance.
“I think the Prime Minister has recognised the importance of the North West Minerals Province by saying it is going to be used as leverage in any tariff negotiations with Donald Trump,” Mr Katter said.
“That should make the decision making pretty easy among treasury to see the government should be taking equity in the Mount Isa copper smelter.”