The Queensland Government says it is committed to securing the ongoing operations of Glencore’s (LSE:GLEN) Mount Isa copper smelter and Townsville refinery.
Minister for Natural Resources and Mines Dale Last says the government has tabled an offer of support to protect local jobs and “ensure the long-term future of these critical operations”.
The Anglo-Swiss global commodity trading and mining company is reportedly considering the offer.
Minister Last is now calling on the federal government to “come to the table and do its share to protect jobs in North Queensland”.
Yesterday (30 July), Mount Isa Mayor Peta MacRae and other business leaders reportedly headed to Canbera to lobby the federal government for a potential multi-billion bailout to rescue the Mount Isa operations.
Glencore reportedly believes the smelter and the copper refinery it feeds will haemorrhage $2.2 billion over the coming seven years.
A final decision on the operations is yet to be made but could reportedly come in the next few months.
As reported by Mining.com.au, there is uncertainty in North Queensland around Glencore’s planned closure and whether it may yet open up opportunities for other explorers and producers.
Concerns centre on job losses, reduced economic contribution to the region and state, and the shuttering of one of Australia’s only two copper smelters.
As Lion Selection Group (ASX:LSX) Managing Director Hedley Widdup explains to this news service, Glencore requires around 2-3 million tonnes of copper ore to make economic sense for it to continue operating the smelter.
Widdup says there is a massive benefit in the smelter remaining operational as it eliminates the high cost of having to rail copper concentrate to the Port of Townsville.
Write to Adam Orlando at Mining.com.au
Images: Glencore
