Palaszczuk throws $50m lifeline to sacked Glencore workers

The company’s copper smelter in Mount Isa and copper refinery in Townsville would remain open to 2030 – subject to “additional capital investment” – as would the company’s zinc operations, Glencore said.

Glencore said it was confident there would be enough third-party work for the copper smelter and refinery to keep them profitable.

As previously announced, Glencore’s Lady Loretta zinc mine, 140 kilometres north-west of Mount Isa, will also close in 2025.

Too early for redundancy numbers

Ms Palaszczuk said the government was determined Mount Isa would remain a key part of the state’s mining future, especially as it develops the $5 billion CopperString transmission line from Townsville to the north-west region.

“Our No. 1 priority is to protect jobs and retain skilled workers in this important region,” she said.

“I understand many workers and their families will find Glencore’s decision a difficult one to accept. But we will always do what we can to support workers and their families to find new good, secure jobs.”

But local state MP Robbie Katter said Glencore had outstayed its welcome in Mount Isa.

He said he did not believe Glencore that the copper mines had become unviable, pointing to previous advice about the company’s Townsville smelter and Ernest Henry mine, which had its life extended by a new owner.

“The reality is no one wants Glencore here in the north-west – we want an owner who is less interested in playing games and more interested in mining the $750 billion worth of untapped critical minerals that exist in the region,” he said.

“If our future out here is so tied to the whims of a fickle global commodity trader, then we need to reassess the operating conditions that we have created and the value our government has placed on mining to our economy.”

Mr Dick, who last year delivered a financial assistance package to help keep Glencore’s smelter open to 2025, called on the company to contribute to an economic support package, “over and above” their statutory obligations to their workers.

The chief operating officer of Glencore’s zinc assets, Sam Strohmayer, said it was too early to put a figure on how many workers would receive redundancies.

“Redundancies are the last resort and will be offered only when other options have been exhausted,” he said.

“Glencore will continue to invest in the long-term future of Mount Isa Mines, including the George Fisher mine, with a current life of mine to 2036, and our zinc-lead concentrator and lead smelter.

“We also expect the copper smelter and refinery to continue operating to 2030, subject to the approval of additional capital investment.”

Australian Workers’ Union Queensland secretary Stacey Schinnerl said her members expected the government to leave “no stone unturned when it comes to providing direct support to the Mount Isa community and affected workers”.

“Now is the time for the government to cut through the green tape and fast-track approvals for new mines in the region to provide a suitable transition for affected workers,” she said.

“We are also calling on Glencore to provide redeployment opportunities to local workers who will be affected by these closures.”

Queensland Resources Council chief executive Ian Macfarlane said the Palaszczuk government’s controversial new coal royalty regime did not help future investment in the sector.

“The future success of the resources sector cannot be taken for granted by governments, and we need policies that encourage investment in new Queensland resources projects as more mines reach their end of production in coming years,” he said.

“The Queensland government needs to start listening to the many warnings about the threat to future investment as a result of its snap decision to impose the world’s highest coal royalty tax rates.”