Australian taxpayers will finance a multi-million-dollar rescue package for mining company Glencore to maintain its copper processing facilities in Queensland until the end of 2028. Glencore has accepted $600 million in financial support from both state and federal governments for its Mount Isa Copper Smelter and the adjacent Townsville Refinery. The Swiss multinational warned that without this government assistance to rebrick the smelter infrastructure, its copper assets would shift to care and maintenance mode, prompting nearly five months of negotiations.

The Mount Isa smelter processes copper concentrate from Glencore and third-party sources, which is transported by rail and exported through the Townsville port via the refinery. The Townsville refinery has the capacity to process up to 300,000 tonnes of pure copper cathode annually, a key material for copper wire and cabling. The Mount Isa Copper Smelter requires rebricking every four years, involving the replacement of 60,000 refractory bricks, with the next rebricking scheduled for 2026. The last major rebricking was completed in 2022, and in 2016, the previous Labor state government contributed $15 million toward a $30 million rebricking project.

Glencore employs approximately 600 workers directly at the Townsville refinery and Mount Isa smelter. However, the peak-economy lobby group Townsville Enterprise (TEL) indicated that the company is linked to thousands of additional jobs indirectly. TEL Chair Kevin Gill stated, "There are about 17,000 jobs at risk if these operations were to cease." He noted that the smelter produces sulphuric acid, which is transported to the Phosphate Hill fertilizer plant and shipped from the Port of Townsville.

Gill emphasized the importance of the Mount Isa smelter, stating it is the only facility in Australia capable of processing third-party copper concentrate. He added, "There is a lot of copper that second and third-tier miners are keen to mine, and they do rely on this smelter as well as the refinery and port."

In its request for government support, Glencore described its smelter and refinery as strategically important assets for Australia, but noted they are uneconomic for the company. The company cited a significant drop in refining charges due to increased smelting capacity in China and Indonesia. Additionally, Glencore pointed out that energy costs in Queensland's north-west are significantly higher than those in India, China, Canada, and the United States.

Dr. John Coyne, the Northern Australia lead at the Australian Strategic Policy Institute (ASPI), commented that government support for Glencore should be viewed as a hand-up rather than a handout. He stated, "At the end of the day, the long-term predictions for copper are great; demand will increase." Dr. Coyne also expressed concerns about market competition, noting that smelters in China benefit from cheap loans and low-cost power. He concluded by stressing the need to protect some domestic industry to ensure national resilience.