General News
22 September, 2025
Still no deal on Mount Isa copper smelter
Glencore has yet to reach a deal with the state and federal governments.
Glencore's proposed deadline for a support package to keep the Mount Isa copper smelter and Townsville refinery running in 2026 and onwards has now expired, with the state and federal governments yet to make a major commitment to the Swiss commodity trader.
While Glencore was hoping for more than $2 billion over a long period, it is understood that the owner of Mount Isa Mines is now asking for a minimum of $600 million over the next three years.
This would allow the miner to do further long-term modelling on the operations at both the smelter and refinery. Glencore has previously said that it expects to lose more than $2 billion over the next seven years based on market forecasts as a result of cheaper processing charges in countries like China.
Surprisingly, Prime Minister Anthony Albanese has so far decided against meeting with Glencore representatives.
Last week, Queensland Premier David Crisafulli said his government "won't rule anything out" when asked by Traeger MP Robbie Katter if the state would intervene if Glencore opted to shut down the smelter.
Mr Katter asked Mr Crisafulli if the Queensland government would be prepared to introduce legislation to allow government-appointed administration to usher in alternative private ownership if Glencore stopped smelting at the Mount Isa plant.
The Premier said his government’s offer to Glencore had been on the table for some time and the federal government now also had an offer on the paper.
“There isn’t a cigarette paper of difference between what the federal government want to achieve and what we want to achieve,” he said.
“But I say to Glencore, partnerships are about the good and the bad times and they have done very, very well out of Queensland, very well. And what we’re asking Glencore to do is come to the table and negotiate but understand that they also have a responsibility.”
Mr Crisafulli said he saw a future for copper smelting and Glencore had a role to play.
“And the Member (Mr Katter) has asked a question and it’s a fine question and I say to the member, ‘we won’t rule anything out and Glencore needs to know it’.
“Because if they take a decision to close that and put it into care and maintenance, that’s their decision. It’s not the federal government’s decision, it’s not the state’s decision and it’s not the council’s decision.”
Mr Katter said that all he saw was half-baked tinkering around the edges on tax and insipid arguments around corporate benevolence as the government responded to the threatened closure of the Mount Isa smelter and Townsville refinery.
“It’s accepted that the concept of shared equity in our nationally significant infrastructure is palatable from all sides, yet I fear the bureaucrats will yet again drag ministers by the ear and tell them that short-sighted cash injections are the only way to go,” he said.
“We once had a country that was led by leaders, not faceless economic rationalist bean counters.
“The Premier and his Mines Minister will say what they think are tough words in front of a camera, but when it comes to global commodity behemoths like Glencore, the only way to engage is fiercely around the negotiating table.”