Federal, State Governments Pledge $600 Million Lifeline to Save Copper Smelter and Refinery

State and federal governments have combined efforts to provide a funding boost to Glencore’s embattled Queensland facilities.

Molten copper is poured in a workshop which recycles copper in Anqing, in China's eastern Anhui province on July 11, 2025. AFP via Getty Images

Federal Industry Minister Tim Ayres has travelled to Queensland to announce support to keep the embattled Mount Isa Copper Smelter and Townsville Refinery operational.

According to an official joint statement between Ayres and Dale Last, Queensland’s LNP minister for natural resources, the government will spend around $600 million on the two facilities over the next three years.

The move is expected to maintain around 600 jobs.

Ayres spent the morning of Oct. 8 in the north Queensland mining town of Mount Isa, and will spend the later half of the day in Townsville.

Swiss-owned Glencore, one of the world’s largest natural resources companies, had called for government support in August after its facilities were earmarked for potential closure.

Glencore, which owns both facilities, says increasing low-cost oversupply from China had put them at risk of closure amid predictions of a $2.2 billion loss over the next seven years.

“Funding will be provided in three payments of up to $200 million over the next three years, contingent on the completion of a transformation study, alongside other review points,” the joint statement said.

Minister for Industry and Innovation Tim Ayres outside Parliament House in Canberra, Australia on Aug. 19, 2024. AAP Image/Mick Tsikas

“The transformation study will focus on driving sustainable and long-term industrial capability in Mount Isa.

“It will evaluate the end-to-end copper value chain in the region and seek to understand the long-term opportunity for the facilities, industry and Mount Isa workers beyond the support period, positioning the region for a more diverse and resilient future.”

Both levels of government have now signed a Heads of Agreement with Glencore, which they say will give certainty to workers, local communities and the businesses reliant on the Mount Isa operation.

“Copper is critical to building solar panels, wind turbines and energy storage systems,” Ayres said.

“This investment strengthens our supply chains and supports Australia’s transition to net zero.

“If Australia didn’t already have established facilities like the Mount Isa Copper Smelter, we’d be looking to build them to protect Australia’s industrial capability, and strengthen the capability needed for future.”

Minister Last said the Queensland government will provide funding for capital infrastructure works that support smelter operations at Mount Isa.

“This joint package is an injection of confidence in Queensland’s copper supply chain, from the contractors and suppliers in Mount Isa, the workers at Phosphate Hill, to the emerging copper projects north of Cloncurry and the port workers in Townsville,” he said.

‘Short-Term Lifeline’, Says Glencore

In a statement, Glencore said the outcome had been the product of months of negotiation, and would provide a short-term shot in the arm as more long-term strategies evolved.

“This agreement provides a short-term lifeline for the copper smelter and refinery and comes after Glencore had already stepped up to absorb significant financial losses to maintain operations and jobs while working on a solution with government,” Glencore Metals Australia Interim COO Troy Wilson said.

Over the next six years, Glencore says it will undertake $2.5 billion worth of infrastructure projects in the Mount Isa region, including investment in the George Fisher Mine and potential development of the Black Star Open Cut project.

Good News, But More to be Done

State MP Robbie Katter described the move as a halfway point in preserving Australia’s industry.

“This is a start and it’s at least reassuring us that our critical sovereign capability needs to be preserved,” he said in a statement.

“Let’s be clear—we’re only at half-time. There’s no champagne and celebrations at half-time, just a rev-up from the coach to go out and finish the job in the premiership half.

“North Queensland, from Townsville to Mount Isa, and indeed Australian industry need confidence that we will keep the ability to make things ourselves and not be beholden to overseas interests.”

The Mount Isa Mines copper smelter is the only smelter in Australia that treats products from local and regional mines as well as nationally.

“Australia is on the brink of de-industrialising because of our crazed net zero policies.”

Queensland Nationals Senator Matt Canavan echoed the sentiment that the lifeline was helpful but may not protect the industry long-term.

“The Glencore support package is good news for Aussie jobs in the short-term, but in the long-term the pressure from Labor’s carbon tax (e.g. safeguard mechanism) will be too much for our industry to bear,” he said.

“We are in a situation where industry is smashed with skyrocketing power bills and massive fines for emitting carbon, and when those industries start to close, we spend millions bailing them out.

“Maybe we could just build cheap energy, drop the carbon tax and get industry firing again.”