Swiss mining giant Glencore is reportedly in line to get a taxpayer bailout to save an ailing smelter, potentially saving hundreds of jobs.
Federal Industry Minister Tim Ayres and Queensland Resources Minister Dale Last are expected in Mount Isa in north Queensland on Wednesday to make an announcement, the Australian Financial Review has reported.
In July, Glencore closed its underground copper mine at Mt Isa, with a loss of almost 500 direct jobs.
It also warned it was preparing to put the nearby smelter and Townsville copper refinery into care and maintenance until market conditions improved.
Glencore had said the smelter assets were losing money and forecast a $2.2 billion loss over the next seven years.
There had been appeals to the federal and Queensland governments to offer support to save the smelter.
The federal opposition said any effort to keep the copper operations open would be good news for the local community.
“This is welcome news but it should never have taken this long,” resources spokeswoman Susan McDonald said in a statement.
“For months, smelter and refinery workers in Mount Isa and Townsville – plus support industries – have lived under a cloud of uncertainty while the federal government dragged its feet.”
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