PERTH (miningweekly.com) – Diversified major Glencore has announced plans to extend the life of its copper smelter in Mount Isa and its refinery in Townsville beyond 2022, after reaching a deal with the state government.
As part of the Queensland government’s North Queensland Recovery Plan, Glencore will receive a one-off incentive, with the miner on Wednesday announcing that it would invest more than A$500-million for the continued operation of the copper smelter and refinery.
The incentive will partly mitigate the negative costs of continuing these assets, which face high fixed costs and struggle to compete internationally, Glencore said.
“We recognize these metallurgical assets are an important part of the North Queensland economy and part of a broader supply chain which supports thousands of jobs. This agreement secures ongoing employment for about 570 direct smelter and refinery workers, and a further 1 000 indirect jobs.
“Glencore will continue to contribute to the North Queensland economy through the ongoing payment of taxes and royalties. Glencore will also undertake further studies to examine the economic feasibility of large scale e-recycling or custom smelting into the future,” the company said.
In addition to the incentive for Glencore, the state government’s Recovery Plan also includes significant investment into water and infrastructure in the region, and A$950-million in payroll tax relief, A$42.4-million for a Covid-19 job support loan, and A$8.1-million in grants for small businesses.
Treasurer Cameron Dick said the funding lifeline was part of the Queensland government’s A$8-billion plan to protect the health, jobs and businesses of Queenslanders.
“The Regional Economic Recovery Plan released by the Premier today, builds on our immediate commitment to keeping the region moving through extra support for businesses, workers and households,” the Treasurer said.
“Our strong health response and our strong borders have positioned us well for economic recovery.
“The North-West Minerals Province was one of the world's richest mineral-producing regions, with half a trillion dollars’ worth of the new economy minerals needed for batteries and renewables.
“Demand for those critical minerals will climb over the next decade from the renewable and technology sector.
“Queensland needs to maintain minerals processing capability in the North West to keep supply chains open for future critical mineral developments and the jobs they will create.”
The Queensland Resources Council has welcomed Glencore’s continued investment in the region, with CEO Ian Macfarlane saying it offered job security at a time when the state’s employment rate was forecast to rise to 9% owing to the impacts of Covid-19.
“Smelters and refineries generate downstream jobs in the mining equipment and technology services sector which supply and service the resources industry.
“I visited Townsville yesterday to promote the importance of the resources sector to Queensland’s economic recovery and the feedback I received was the sector’s massive contribution to jobs and regional economies,” Macfarlane said on Wednesday.
“The resources industry will continue to play a critical role in keeping Queenslanders working and earning through Covid-19 and will be central to the State’s future economic prosperity post Covid-19.
“During the Covid-19 response and its recovery, the resources sector has kept as many of the 372 000 Queenslanders who work in or because of our industry working and earning.”