The upcoming closure of Glencore’s (LON:GLEN) Mt Isa copper mines in Queensland may threaten hundreds of jobs, but it ‘changes nothing’ for upcoming ASX-listed copper hopeful Mt Isa Minerals.
Glencore this week announced its plans to close its underground copper operations at Mt Isa in the second half of 2025, putting some 1200 workers on tenterhooks.
In a statement yesterday, the Swiss mining giant said its Enterprise, X41, and Black Rock mines had expired, and its copper concentrator and Lady Loretta zinc mine 140km to the northwest would likewise cease operations as well.
“We know this decision will be disappointing for our people, our suppliers, and the Mount Isa community,” Sam Strohmayr, Chief Operating Officer of Glencore’s Zinc Assets in Australia, said.
“The reality of mining is that mines have a beginning, middle, and end. And unfortunately, after 60 years of operation, Mount Isa’s underground copper operations have now reached that end.”
“unfortunately, after 60 years of operation, Mount Isa’s underground copper operations have now reached that end”
Nevertheless, Mount Isa Minerals, which holds a 326km-square package of land directly adjacent to Glencore’s Mount Isa site, is still looking to become a key player in the Queensland region. Due to float on the ASX later this year, it has plans to use Glencore’s processing facilities as a fast-tracked pathway to commercialisation.
Speaking to Mining.com.au this morning, Executive Chairman David Williams says the decision to cease operations had no effect on Mount Isa Minerals’ strategy, and that it might even strengthen the company’s position.
“It demonstrates that what we’re doing, what we’ve got, and how we proceed has become more strategically important. We knew Mount Isa was declining, we knew they needed more resources,” Williams says.
“So it changes nothing as far as we’re concerned. I think it just improves our position. And I think it’s going to start putting more pressure on copper, and the supply of copper, and where it’s going to come from. So what’s that going to do to the price?”
“it changes nothing as far as we’re concerned; I think it just improves our position”
Despite what will be a substantial shutdown, Mount Isa Mines — the Glencore subsidiary that operates the Mount Isa operation — says its copper smelter, George Fisher zinc mine, zinc-lead concentrator, lead smelter, and copper refinery in Townsville will continue operating.
To that end, Strohmayr noted the company would continue to invest in the George Fisher mine, which is expected to operate until at least 2036, as well as its zinc-lead concentrator and lead smelter.
“We also expect the copper smelter and refinery to continue operating to 2030, subject to approval of additional capital investment.
These are important strategic assets, not just for Glencore but for the North West Minerals Province and the future of Queensland’s critical minerals industry.”
Though a number of studies had been carried out with the aim of extending the lives of the Enterprise, X41, and Black Rock mines, low ore grades and ageing infrastructure had resulted in an uneconomic future.
Glencore employs roughly 1200 people at its underground copper mines, copper concentrator, and supporting services.
While it’s too early to put an exact figure on the precise number of people facing redundancy, Strohmayr says the impact will be better known when internal discussions around retention, redeployment, and retraining have taken place.
“Redundancies are the last resort and will be offered only when other options have been exhausted,” he says.
The Australian Workers Union (AWU), however, had some stern words to offer.
In a statement this morning, AWU Queensland Secretary Stacey Schinnerl said she had already contacted Queensland Treasurer Cameron Dick about providing direct support to affected workers and the broader Mount Isa community.
“Now is the time for the Government to cut through the green tape and fast-track approvals for new mines in the region to provide a suitable transition for affected workers. We are also calling on Glencore to provide redeployment opportunities to local workers who will be affected by these closures.
Glencore have been using foreign labour and FIFO labour hire on their other operations in the region. It is our expectation that local workers who are affected by these closures are given priority access to these roles.”
“Now is the time for the Government to cut through the green tape and fast-track approvals for new mines in the region“
With several officials on the ground in Mount Isa to support its membership, the AWU will be holding a community meeting at the Mount Isa Civic Centre at 6pm on Wednesday, 18 October.
Glencore currently employs 18,190 people in Australia and contributed almost $20 billion to regional, state and national economies in 2022, including $7.5 billion in government tax and royalties.
Write to Oliver Gray at Mining.com.au
Images: Glencore
