Closing a copper smelter that employs hundreds of people would be a “national disgrace”, a state government claims.
Queensland Treasurer David Janetzki has told miner Glencore and the federal government to keep afloat Mt Isa’s copper smelter and refinery in the state’s northwest, as the company claims it could lose $2.2 billion over the next seven years.
Glencore insists it urgently needs government assistance to keep operating, but the Queensland government argues it has made a “genuine and responsible” offer to support the business and retain thousands of jobs.
“It would be a national disgrace if the federal government and Glencore were not at the table working to negotiate here,” Mr Janetzki told reporters in Mt Isa on Thursday.
The former Labor state government threw a $50 million support package to workers at the smelter in 2023 when Glencore announced it would close its copper mining operations in the northwest after 60 years.
The package was announced with the expectation for Glencore to match the bid.
But the latest offer from the Liberal National government remains “confidential” as it looks to the mining giant and federal government to work out the deal.
“Queensland has done its fair share here,” Mr Janetzki said.
A leaked memo on Wednesday revealed Glencore believed it was no longer able to absorb the multimillion-dollar losses and needs a solution in the coming weeks.
“We are running out of time,” it said.
Glencore said it would start preparations to place its Mt Isa smelter and Townsville refinery into care and maintenance if adequate government support didn’t come.
Mr Janetzki did not detail whether other mining companies had expressed interest in taking over the smelter and refinery when asked on Thursday, saying a range of confidential discussions are ongoing.
Mt Isa Mayor Peta MacRae welcomed any other company to take on the smelter to keep it running but in the short term, she said it is up to the government to keep the livelihoods of 17,000 workers afloat.
“We don’t think the state or the feds have the appetite for crashing the North Queensland economy, so we hope that everyone’s going to get in a room and find a solution,” she told reporters.
The federal coalition called for a Senate inquiry on Wednesday into the metals manufacturing industry, saying thousands of jobs could be lost in Queensland if Glencore is not supported.
Glencore employs about 600 workers at its smelter and refinery, with a further 17,000 staff at 25 other operations across Australia.
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