Glencore’s firing in Isa

MINING giant Glencore will extend the life of its Mount Isa copper smelter and Townsville refinery until at least 2025 after the Queensland government agreed to a oneoff payment to secure the future of the industrial facilities.

Glencore had blamed “high fixed costs”, including power prices, for the uncertainty surrounding the smelter and refinery ahead of a decision on rebricking its smelter at a cost of about $40m.

However, the government’s “one-off incentive”, included in its North Queensland Recovery Plan, was enough for Glencore to commit $500m to continue operating the copper smelter and refinery until 2025.

“This incentive will partially mitigate the negative costs of continuing these assets which face high fixed costs and struggle to compete internationally,” Glencore said. “We recognise these metallurgical assets are an import part of the North Queensland economy and part of a broader supply chain which supports thousands of jobs.”

Closing the smelter would have significant knock-on effects and may have threatened up to 1000 jobs.

In addition to processing concentrate from Glencore’s own mines, the smelter takes concentrate from other producers in the region, which would have needed to negotiate new offtake and transport arrangements had the smelter shut after 2022.

Its exit could also have put pressure on Incitec Pivot’s Phosphate Hill fertiliser plant, which relies partially on the sulfuric acid produced as a byproduct from the smelter.

The support will allow for the four-yearly rebricking and maintenance work at the smelter due in September 2021, according to Queensland government.

Queensland Resources Council CEO Ian Macfarlane said the investment was coming as Queensland’s unemployment rate was forecast to rise to 9 per cent due to the impacts of COVID-19.

“(This investment) will be a huge boost to the regional economies in the north and northwest of Queensland with a further 1000 indirect jobs supported,” he said. the