Glencore (LSE:GLEN) has agreed terms with the Australian and Queensland governments on a support package worth up to $600 million to keep the group’s Mount Isa copper smelter and Townsville copper refinery operating for the next three years.
The deal ends months of uncertainty over the future of the two facilities, supporting 1,000 direct and indirect roles with government, unions and Glencore highlighting the copper supply-chain importance of the North Queensland operations.
Interim Chief Operating Officer Troy Wilson said the agreement would provide a “short-term lifeline” after the company had absorbed “significant financial losses” to keep operations running.
“On behalf of Glencore and our workers, I’d like to thank the Australian and Queensland governments for backing the region and these strategic assets,” Wilson said.
“It is our hope that conditions improve over the next three years to a point where government assistance is no longer necessary.”
The Australian Workers’ Union (AWU) strongly endorsed the rescue package, saying it secured more than 1,000 regional jobs and protected half of Australia’s copper-smelting capacity.
AWU National Secretary Paul Farrow said the announcement “backs Australia’s potential to become a global manufacturing powerhouse”.
“You can’t have a Future Made in Australia without the ability to refine our own metals and critical minerals,” Farrow said.
“Maintaining our sovereign manufacturing capability isn’t just about jobs today; it’s about securing Australia’s place in tomorrow’s economy.”
Write to Dan Petrie at Mining.com.au
Image: Glencore
