Glencore Seeks Govt Support to Avert Mount Isa Smelter Closure
Glencore (LON: GLEN) has deemed its Mount Isa copper smelter economically unviable and is awaiting responses from both the Australian federal and Queensland state governments regarding requests for financial assistance to continue operations.
The Swiss mining and commodities giant cited “unprecedented smelting market conditions,” along with high energy, gas, and labour costs, and a shortage of copper concentrates as key factors undermining the facility’s sustainability.
The company initially announced the planned closure of its Mount Isa copper mines and related operations in October 2023.
At that time, Glencore stated that all assets comprising the Mount Isa complex — including the Lady Loretta zinc mine, located approximately 140 km northwest of Mount Isa — would cease operations in the second half of 2025.
Originally, the closure was expected to affect more than 1,200 jobs. However, in April 2025, Glencore revised that estimate to around 500 roles, attributing the reduction to progress in workforce planning.
“We are also actively working to redeploy as many people as possible over the coming months,” said Sam Strohmayr, Chief Operating Officer for Glencore’s Australian zinc and copper operations.
Despite moving ahead with closure plans, Glencore has reiterated its hope that government support might help keep the smelter and associated refinery operational.
Federal Minister for Industry and Innovation, and Minister for Science, Tim Ayres, acknowledged the seriousness of the situation.
“As a vital industrial site for the Mount Isa community and the broader region, any closure of the Mount Isa copper smelter would have a detrimental impact on Australia’s sovereign capability and on downstream facilities that rely on the smelter,” Ayres said following a site visit. However, he did not detail any specific measures the federal government is considering.
Queensland’s Minister for Natural Resources and Mines, Dale Last, emphasized the facility’s strategic and economic importance.
“The Mount Isa copper smelter is a cornerstone of Queensland’s economy and supports the viability of nationally significant infrastructure like the Mount Isa to Townsville rail line and the Port of Townsville,” Last said.
“While we are committed to working in good faith with Glencore, the ultimate decision lies with the company.”
In response, Glencore stated that it continues to maintain open communication with both levels of government but has not yet received any firm proposals to support the smelter’s continued operation.
SOURCE:mining.com
