The Association of Mining and Exploration Companies (AMEC) Chief Executive Warren Pearce says the latest investments to keep Glencore’s (LSE:GLEN) Mount Isa copper smelter and Townsville copper refinery operational is the “right decision”.
“This investment ensures Australia retains critical processing capability at a time when global demand for our minerals is at a premium,” Pearce says.
As Mining.com.au reported, the Australia Federal and Queensland governments signed a heads of agreement with Glencore for a $600 million support package to keep the smelter and refinery running for the next three years.
The funding will be provided in three payments, contingent on completing a transformational study, alongside other review points, protecting more than 600 direct jobs and a further 500 jobs.
Pearce adds that the government’s backing for the smelter gives confidence to explorers and junior to mid-tier mines across the region.
“Knowing there’s a viable processing pathway in place helps justify new exploration investment and keeps the pipeline of projects alive,” he says.
All things critical
According to the Department of Industry, Science and Resources’ (DISR) latest Resources and Energy Quarterly, Australia is ranked the second in the world for its copper resources and the fifth largest refined exporter.
In 2024, the nation produced 210,000 tonnes of copper at its largest mine. In the first half of 2025, Australian mined copper production reached 363,000 tonnes, representing an 8.9% decrease year-on-year.
Despite this, copper output is forecast to grow on average by 2.8% year-on-year from 2024-25 to reach 760,000 tonnes by 2026-27, as reported by DISR.
This increase is driven by expansion at existing mines and ramp up at new mines.
Global copper demand is forecast to rise to meet requirements for clean energy technologies, data centres, and electricity infrastructure. Copper demand is expected to lag demand as new mines are slow to develop and trade barriers interrupt scrap flows.
Write to Aaliyah Rogan at Mining.com.au
Images: Glencore
