Following 60 years of operations, Glencore has announced plans to close its Mount Isa Mines underground copper operations and copper concentrator in H2 2025.
Glencore has attempted to extend the life of underground copper mines through various studies and reviews but has concluded the mine has reached the end of life.
According to the company, studies indicate that the remaining mineral resources are economically unviable due to low ore grades, geological conditions, unsafe extraction methods, and aging infrastructure.
Glencore’s Lady Loretta zinc mine, 140 kilometres northwest of Mount Isa, will also close in 2025.
Meanwhile, other metals assets of Mount Isa Mines will continue to operate, including the copper smelter, George Fisher Mine, zinc-lead concentrator, lead smelter in Mount Isa, and the copper refinery in Townsville.
“We know this decision will be disappointing for our people, our suppliers, and the Mount Isa community. The reality of mining is that mines have a beginning, middle and end. And unfortunately, after 60?years of operation, Mount Isa’s underground copper operations have now reached that end,” Glencore Zinc Assets in Australia Chief Operating Officer Sam Strohmayr said.
“Our focus over the coming months will be to work closely with our people and contractors, our suppliers, and the Mount Isa community to provide support as we move towards closure of these assets,” Strohmayr stated.
The Mount Isa underground copper mines, copper concentrator, and supporting services currently employ around 1,200 people.
“It’s too early to put a figure on how many people may receive redundancies until we work through a process of speaking to each worker and discuss options around retention, redeployment, and retraining. Redundancies are the last resort and will be offered only when other options have been exhausted,” Strohmayr said.
According to him, Glencore plans to maintain its investment in Mount Isa Mines, including the George Fisher Mine, zinc-lead concentrator, and lead smelter, for the long-term future.
“We also expect the copper smelter and refinery to continue operating to 2030, subject to approval of additional capital investment,” he added.
Australian Workers’ Union (AWU) Stacey Schinnerl said AWU members at Mount Isa Mines have contributed billions of dollars to the Queensland economy for almost a century, benefiting the Queensland Government and resources companies like Glencore.
“Now is the time for the Government and Glencore to provide our members the support that they have always provided them,” Schinnerl stated.
“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. We are also calling on Glencore to provide redeployment opportunities to local workers who will be affected by these closures,” she added.
Following the announcement, the Queensland Government has unveiled a support package of up to $50 million for affected mine workers and the Mount Isa community.
“Our Government will work together with Glencore to develop an economic support package to help workers and the community transition as these mines close in 2025,” Deputy Premier Steven Miles said.
The support package consists of two elements:
- Up to $30 million will be invested to speed the development of resource projects in the North West Minerals Province in the next five years;
- Up to $30 million, to be matched by Glencore, for an economic structural adjustment program for Mount Isa and North West Queensland.
Premier Annastacia Palaszczuk said the State Government’s top priority is safeguarding jobs and retaining skilled workers in the vital region.
“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,” Premier Palaszczuk stated.
Furthermore, Treasurer and Minister for Trade and Investment Cameron Dick said the planned closure would cause uncertainty for Mount Isa residents, noting the State Government will back the city and the region all the way.
“Now I’m calling on Glencore to play its part and make a financial contribution to the economic support package, over and above their obligations to these workers,” Treasurer Dick added.
Minister for Resources Scott Stewart commented, “We must now look to the future, both in how we can support workers transition to other roles, and support for miners to unlock new opportunities for North West Queensland.”
The Queensland Resources Council (QRC) has described Glencore’s planned closure as unfortunate but commended the company’s commitment to work with affected workers to find new opportunities.
According to QRC Chief Executive Ian Macfarlane, the announcement emphasises the need for new resources investment in Queensland to create new projects as major mines like this reach their end of life.
“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,” Macfarlane said.
“It’s time the Queensland Government started encouraging resources investment, which will support exploration and investment in new projects, rather than discouraging it with the world’s highest royalty taxes and endless approval processes,” he added.
