Glencore to Close Mt Isa Copper Mines After 60 Years as Smelter Faces Uncertain Future

Glencore Nears Closure of Mt Isa Copper Mines, Smelter Future Uncertain

Glencore is set to close its final two copper mines in Mount Isa, Queensland, this week, marking the end of an era for the company’s upstream copper operations in Australia.

The decision comes ahead of a separate determination on the future of the region’s copper smelter, which may also be shut down.

A spokesperson for Glencore confirmed that the mines—operational for more than 60 years—are being closed due to declining ore grades, rendering them economically unviable.

The company first announced the planned closures in October 2023 following a comprehensive review.

In the lead-up to the shutdown, Glencore has been seeking financial support from both the Queensland and federal governments to keep the Mount Isa smelter operational.

If retained, the facility would process ore from third-party miners. However, the smelting industry in Western countries faces mounting challenges due to stiff competition from heavily subsidised Chinese plants.

Last month, Troy Wilson, Chief Operating Officer of Glencore’s Australian metals division, stated that there is “no longer a level playing field” with China, pointing to the significant government support that smelters there receive. Glencore expects to make a final decision on the smelter’s future by the end of September.

Currently, the Mount Isa smelter processes over one million tonnes of copper concentrate annually, including material from BHP Group’s Olympic Dam mine in South Australia and other domestic producers.

Meanwhile, Glencore is also reshaping its zinc portfolio. On Tuesday, the company announced it would sell its Lady Loretta zinc mine and associated landholdings to Austral Resources Australia.

Glencore is scheduled to release its half-year financial results on August 6.