A package supporting the continuation of Mount Isa smelter operations is an important step that provides time to strengthen the region’s long-term industrial capability, according to MITEZ Copper Working Group chair Steve de Kruijff.
Mr de Kruijff was commenting after news the Australian and Queensland governments would pitch in up to $600 million to keep Glencore’s Mount Isa copper smelter and Townsville refinery running for the next three years in a deal that also requires completion of an industry transformation study.
“While the transition package supports the smelter in the short term, pragmatic steps remain, particularly around ensuring sustainable feedstock supply, addressing water and energy constraints, and improving regional logistics and regulatory settings,” the former Mount Isa Mines copper executive said.
“We know that significant copper and critical minerals resources exist, including Tier 2 and Tier 3 projects throughout the corridor.
“But unlocking these will depend on targeted investment in enabling infrastructure — rail subsidies and intermodal access, regional water systems, flexible permitting, and cost-competitive energy.
“MITEZ will continue to work with government and industry partners to progress these measures and ensure North-West Queensland remains a resilient, globally competitive mining and processing hub.”
The Mount Isa to Townsville Economic Development Zone (MITEZ) is a regional organisation representing local government areas across the northern parts of Queensland.
The Association of Mining and Exploration Companies (AMEC) described the $600 million government rescue package as a smart and strategic move for Australia’s resources future.
“This investment ensures Australia retains critical processing capability at a time when global demand for our minerals is at a premium,” AMEC chief executive Warren Pearce said.
“It provides certainty for local businesses and maintains critical mineral processing capability within Australia.”
Mr Pearce said the governments’ backing for the smelter gave confidence to explorers and junior to mid-tier miners across the region.
“Knowing there’s a viable processing pathway in place helps justify new exploration investment and keeps the pipeline of future projects alive,” he said.
Townsville Enterprise chief executive officer Claudia Brumme said the copper industry was vital for the prosperity of North Queensland.
She described the deal between Glencore and the two levels of government as a huge win, with the support package set to save 17,000 jobs and critical copper processing assets in Townsville and Mount Isa.