Anglo-Swiss mining giant Glencore has entered negotiations with the Australian federal government and Queensland state authorities regarding the future of its Mount Isa copper complex, including two mines, the Mount Isa smelter, and the Townsville refinery. The company plans to close its Mount Isa mines by late 2025 due to declining ore grades and rising operational costs, citing studies that show further operations are economically unviable.
The Mount Isa copper complex, which has a total capacity of 300,000 tonnes of copper cathode per year, processes concentrate from both its own mines and third-party sources in northeastern Australia. However, Glencore reports that treatment and refining charges have dropped to their lowest levels in 25 years, eroding profitability. Competition from subsidized smelters in China and Indonesia has further strained operations.
Sam Strohmayr, Glencore’s Chief Operating Officer for Australian zinc and copper assets, emphasized the need for government intervention to maintain the viability of its processing facilities. Without support, the closure of the mines could lead to significant job losses and a reduction in Australia’s copper refining capacity by 20%. Glencore estimates that workforce redundancies will total around 500 positions after redeployment efforts.
The negotiations come amid broader concerns about Australia’s diminishing competitiveness in mineral processing. Industry leaders have flagged smelting infrastructure as a national security issue, warning that without stronger government backing, Western nations may struggle to reduce dependence on China for critical minerals. Glencore’s request follows similar moves by Trafigura, which is reassessing its zinc smelter operations in Tasmania.
