Global mining giant Glencore has recently issued a warning that its copper smelting plant in Mount Isa, Australia, and its refining plant in Townsville may face the risk of closure without government support, affecting approximately 600 employees.
Glencore, one of the world’s largest commodity trading companies headquartered in Switzerland, emphasized that the oversupply of copper in the global market, particularly from international smelting and refining plants (especially in China), has led to financial losses for its Mount Isa copper smelting plant and Townsville refining plant.
Troy Wilson, the Acting Head of Glencore’s Australian metal operations, stated in a statement to the Epoch Times, “While mines have lifecycles, crucial facilities like Mount Isa and Townsville’s smelting and refining plants must be internationally competitive to survive.”
Competition in the copper concentrate sector has intensified, driving global refining and processing costs to their lowest levels in 25 years. However, rising electricity costs in Australia have increased processing expenses compared to countries like China, making it challenging for local businesses to compete.
Wilson emphasized, “Australia is behind other countries in retaining domestic critical mineral processing capabilities.”
Glencore has indicated that without reaching agreements with the state or federal government, both plants may close within the year. Mount Isa plant is one of only two copper smelting plants in Australia and the only one capable of processing external mine concentrates, contributing billions of dollars annually to the local economy.
Glencore estimates a funding shortfall of 2.2 billion Australian dollars in the next decade.
Despite ongoing negotiations with the state government, the talks have been unsatisfactory, and the company urgently seeks support at the federal level.
Queensland’s Minister for Mines, Dale Last, stated the government will responsibly assist but will not unconditionally subsidize multinational corporations.
He told the Epoch Times, “The Crisafulli government will continue to negotiate in good faith, but will not write a blank check for a multinational company that distributed 2.2 billion US dollars in dividends to shareholders just a few months ago and always prioritizes global business interests over local communities.”
The state government has proposed several incentives to Glencore, including deferring payroll taxes, aiming to preserve Queensland’s resource processing industry and local livelihoods.
Last urged the federal government to take action to address the growing influence of overseas dominance.
He said, “We will continue to appeal to the federal government because the competitiveness of Australian smelters is a national issue that requires a national response.”
Katter’s Australian Party, governing the Mount Isa region, advocates against direct cash subsidies to Glencore, promoting broader reforms instead.
Federal MP Bob Katter expressed earlier in April, “What we want to see are arrangements like equity-sharing or new shared smelting facilities, rather than cash subsidies to Glencore. We need a special economic zone here and completion of the CopperString project.” CopperString is an 840-kilometer power transmission line connecting Townsville and Mount Isa.
His son and fellow MP, Robbie Katter, stated in an interview with the Epoch Times, “The industry has proposed a practical and feasible solution to the Queensland government, but the negotiations have been led by Brisbane accountants, offering mere tax and accounting solutions, essentially just renamed subsidies. These are insufficient to sustain the facilities, regardless of the owner.”
“Remember, the world is amid a trade war, but the Queensland government seems to overlook solutions that could enable us to continue playing a role in the copper industry.”
He urged that if the state government fails to reach an agreement, federal intervention is necessary to ensure the future of Queensland’s copper mines and uphold Australia’s sovereignty in copper processing.
“These critical infrastructure projects require reform, not just cash lifelines. The industry has mature solutions awaiting government engagement.”
Federal Resources Minister Madeleine King has not responded to requests for comment from this newspaper.
The original article “Mining Giant Calls for Government Support Amid Flood of Cheap Chinese Copper” was published in English by the Epoch Times.