Mount Isa in Queensland is an area so rich in future mineral resources it should be the “Silicon Valley of critical minerals and mineral resources”, says federal Minister for Industry and Innovation Tim Ayres.
Addressing Parliament yesterday (31 July) about the closure of Mount Isa Mines’ underground copper operation, owned by Swiss multinational Glencore (LSE:GLEN), Ayres and Minister for Resources Madeline King say the government is at the table regarding a potential bailout.
Ayres says Mount Isa is foundational for the future, Australia’s economy, as the globe changes its industrial processes, and engages new technologies.
“Copper and zinc and critical minerals are absolutely foundational as the global economy changes and the industrial processes of our partner economies change,” he says.
Conceding that the outcome for Mount Isa Mines – which has operated in the region for more than a century – remains uncertain, the federal government is keen to work with the Queensland Government, Glencore, and unions to “land a future for this facility”.
Queensland 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”, as reported by Mining.com.au.
Minister Aryes says the Mount Isa Mines facility is facing challenging circumstances.
“There are a range of other facilities around the country. But they all have a different set of challenges. Some of them face challenges in terms of their energy markets. Some of them face challenges in terms of the markets that they’re selling into,” Ayres says.
“They all face the challenge of overcapacity and subsidisation in a series of other economies as well, and a response to the global trading environment becomes more volatile. That’s the challenge that, as Australians, we have to meet together.
“The outcome is uncertain, let’s all of us just recommit here in the Parliament of Australia to doing the right thing by Mount Isa, the right thing by northwest Queensland, the right thing by Queensland and Australia.”
Community concerns on closure
Echoing these sentiments, Minister King says she understands how the local community feels regarding the closure, having witnessed three different refineries shut down since entering parliament in 2021.
“And they’re unlikely to come back. It started in 2021 with BP (NYSE:BP) in Kwinana (Western Australia),” King says.
“My father was one of the first workers there starting in 1956, and that just closed, you know, not that long ago. And the effect on the community is immense. Followed by Alcoa (NYSE:AA) in Kwinana as well, you know, an anchor tenant in that area.
“And now last year Nickel West of BHP (ASX:BHP), going into remission for some time. I’m hopeful it will come back. But all around 3,000 workers are affected.”
However, King notes that it’s a different situation in Mount Isa than what happened in Kwinana.
“The challenges are significant … they’re different for every single smelter, which means we have to look at every single operation on its merits, on what it does, its sovereign capacity it provides to our whole nation and, therefore, our trading partners and what it can provide into the future,” she continues.
“And I think the focus on a regional solution, which I heard coming from Glencore, does seem to make a lot of sense and needs to be pursued.
“I want to make it very clear as the Minister for Resources, the Minister for Northern Australia, and responsible for the Northern Australia Infrastructure Facility, that we remain absolutely committed to supporting the economic development opportunities in North Queensland.”
King says there is a future in commodities like copper and others, but also in the future of critical minerals, which Australia’s regional and global partners need, not only for the net zero transition but for geostrategic reasons, including defence applications.
“And Queensland will be part of that, as will South Australia, as will the Northern Territory, as will WA, because there is so much work to be done,” King continues.
“A strong north means a strong Australia. I’ve said that so many times. It remains the truth.”
Write to Adam Orlando at Mining.com.au
Images: Glencore
