Australia Pledges $391 Million to Save Mount Isa Copper Complex

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Australia's government has signed off on a A$600 million (US$391 million) rescue package for the country's second-largest copper mining, smelting and refining complex at Mount Isa in Queensland.

The bailout for Glencore's (Baar, Switzerland) operation will keep the operation running for another three years and comes after eight months of negotiations between the company and representatives of the local Queensland government. Australia has the world's second-largest copper reserves and is the fifth-largest exporter. For 2024-2025, exports were worth almost US$10 billion. It is seen as a vital part in the government's mission to become a source of both strategic and critical minerals to the rest of the world, especially at a time when China has slapped export restrictions on many critical minerals. Glencore previously announced that it planned to shut its Mount Isa operations, which employs 600 people directly but supports thousands in support roles, due to the higher costs of operation versus heavily subsidized Chinese suppliers. Mount Isa is the only copper smelter in the country that treats products from local and regional mines as well as others across Australia, processing more than 1 million metric tons of copper concentrate annually.

Equally funded by the Federal and Queensland governments, the US$395 million will be divided into three equal payments of A$200 million (US$130 million) per year. Glencore has committed to a A$2.5 billion (US$1.6 billion) investment over six years in the Mount Isa region, which includes further investment in the George Fisher Mine and potential development of the Black Star Open Cut (BSOC) project. Industrial Info is tracking more than 200 copper-related projects in Australia worth US$11 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

"Copper is critical to building solar panels, wind turbines and energy storage systems. This investment strengthens our supply chains and supports Australia's transition to net zero," said Tim Ayres, Minister for Industry and Innovation and Minister for Science. "This funding will protect Mount Isa's workforce and regional Queensland industries. The Albanese Labor Government will hold Glencore to account ensuring they uphold their commitments in this arrangement. Glencore has a crucial role to play in the future of the smelter and an obligation to the community and their workers."

Glencore Metals Australia Interim Chief Operating Officer Troy Wilson said: "Copper is a critical metal for the future. Competition in the global copper smelting market is fierce and it's not a level playing field with various countries seeking to secure substantial market positions. We support the Australian and Queensland Governments' push to develop policies which enable critical metals processing to continue in Australia, backed by a mining sector that makes a significant contribution to the economy and supported by affordable and reliable energy."

Earlier this year, Industrial Info reported that the Australian government had announced its Critical Minerals Production Tax Incentive, designed to cover 10% of the relevant processing and refining costs for Australia's 31 critical minerals, over the period 1 July 2027 to 30 June 2040. The critical minerals incentive is valued at A$7 billion (US$4.5 billion) over the decade. For additional information, see March 05, 2025, article--Australia Introducing Tax Credits for Green Hydrogen, Critical Minerals.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).