The Albanian government and Crisafulli’s government are investing up to AU$600 million in the economy over the next three years Glencore’s (LSE:GLEN,OTC pink:GLCNF) Mount Isa Copper Smelter and Townsville Refinery to protect more than 1,000 jobs.
In one joint statement on Wednesday (October 8), Minister for Industry and Innovation and Minister for Science Tim Ayres and Queensland Minister for Natural Resources and Mines, Minister for Manufacturing and Minister for Regional and Rural Development Dale Last deemed the investment a ‘support package’.
“(It) will relieve immediate pressure on the facility and strengthen Australia’s position as a major global supplier of copper in an increasingly competitive market.”
According to the government, the Mount Isa Copper Smelter will support thousands of jobs through North West Queensland’s interconnected industrial system and processing and refining supply chain.
The funding will save more than 600 direct jobs and a further 500 jobs at the nearby Phosphate Hill facility.
Glencore spoke about the matter on the same day, saying this investment recognizes the Mount Isa copper smelter and the Townsville copper refinery as “strategic national assets that support Queensland’s copper supply chain and the country’s critical minerals strategy.”
Berg Jes has been in existence for almost 100 years and the discovery of the mine in Queensland dates back to January 1924. It is one of the largest mining complexes in the world and Australia’s second largest copper producer.
It may be recalled that Glencore first announced the proposed closure of its copper smelter in October 2023, with a end of operations announcement made on July 29.
The company has been in talks with the government for at least eight months and stated in its announcement that this agreement “provides a short-term lifeline for the copper smelter and refiner,” especially as it has begun absorbing significant financial losses to maintain operations and jobs.
“We support the Australian and Queensland Governments’ commitment to developing policies that will allow the continued processing of critical metals in Australia, supported by a mining sector that makes a significant contribution to the economy and is supported by affordable and reliable energy,” said Troy Wilson, Interim Chief Operating Officer of Glencore Metals Australia, who thanked the Government.
He also underlined copper’s current role in the global transition and described it as a crucial metal for the future.
“Competition in the global copper smelting market is fierce and there is not a level playing field with several countries trying to secure substantial market positions.”
Last ended the announcement by saying that at the forefront of the deal are the boiler manufacturers, the diesel engineers, the technicians and the contractors “who keep these facilities running”.
“This deal is about standing with them because we support Mount Isa, we support our metalworking sector and we support the hardworking Queenslanders who keep our economy strong.”
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Securities Disclosure: I, Gabrielle de la Cruz, have no direct investment interest in any company mentioned in this article.
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