Australias Copper Mining Company Glencore Due to Close Its Doors On Mount Isa

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Ace History Desk – In short: Mount Isa is set to lose a primary industry by the end of July, with Glencore to close its underground copper mine. The mining giant has also threatened to close its copper smelter and refinery without government support to keep the assets going.

What’s next?

The community is calling for answers but remains positive in the face of monumental change.

Dotted along an outback Queensland horizon, mining stacks rise from the red dirt below.

Marking the epicentre of one of the richest mineral deposits in the world, these towering cylinders bear the residue of more than 100 years of blood, sweat, and tears.

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For all that time, mining has sustained the city at its doorstep — Mount Isa.

The city is a service hub for the wider north-west Queensland region. (ABC News: Emily Dobson/Sharon Gordon)normal

Eighteen months ago, Swiss commodity trader Glencore announced it would shut down a substantial part of the Mount Isa Mines complex—the underground copper operation—by July this year.

In that time, the company has reduced the expected redundancies from 1,200 to 500.

But that hasn’t eased the next big threat: to shutter other key assets if government doesn’t intervene.

‘Fighting for our existence’

The view from the city’s lookout has evolved over a century and paints a picture of Mount Isa’s growth. (Supplied: Mount Isa Mines Photographic Collection/ABC News: Sharon Gordon)normal

Separated only by the width of a rail track, it’s hard to distinguish where the Mount Isa Mines (MIM) complex ends and the community begins.

It’s always been that way.

Prospector John Campbell Miles stumbled upon the rocky outcrops that would become the city in 1923.

A year later, Mount Isa was born.

Much of Mount Isa’s rich mining history has been preserved for over 100 years. (Supplied: Mount Isa Mines Photographic Collection/ABC News: Sharon Gordon)normal

“From those days, Mount Isa has always been fighting for our existence,” local historian Kim-Maree Burton said.

From company takeovers to stock market turmoil to industrial disputes, the local community has weathered each storm in its path.

Kim-Maree Burton has spent decades researching the city she was born and raised in.  (ABC North West Qld: Emily Dobson)normal

“It’s our character, regardless of the parental ownership, MIM is part and parcel of this city,” she said.

“Could we have a city without the mine? I don’t think so. Could we have the mine without the city? I don’t think so.

“We’re two peas in a pod, we need each other.”

West Street, Mount Isa was a hive of activity in 1962. (Supplied: Mount Isa Mines Photographic Collection/ABC News: Sharon Gordon)normal

That’s a sentiment shared by many of the 19,000 residents who call the place home.

A born and bred Mount Isan, former local business owner Brett Peterson wasn’t surprised when Glencore announced it was ceasing operations at the underground copper site.

Brett Peterson wants Glencore to reach an agreement with government to keep the smelter operating. (ABC North West Qld: Emily Dobson)normal

“The Mount Isa community can take a hit and get back up. The copper mine closure is taking a hit, I don’t know whether it can take two hits in quick succession,”

Mr Peterson said.

Threats to shutter other key assets like the copper smelter in Mount Isa and copper refinery in Townsville have stoked fears far and wide.

“I don’t want Mount Isa to end up as a small town, there’s too much happening here,” he said.

Domino effect

The remote mining city’s skyline could look very different by next year if the copper smelter is closed. (Supplied: Manda Masters)normal

Mount Isa is home to Australia’s only two copper smelters, essential to the nation’s mining and metallurgy industries. One of these smelters is unique in its ability to process copper from third-party sources, making it a significant asset in the region. Beyond local production, its operational capabilities boost the smelting capacity for multiple suppliers, thereby strengthening the overall copper supply chain and supporting Australia’s economy.

In countries like China and Indonesia, treatment costs are heavily subsidised by local governments.

In a statement, Glencore interim chief operating officer Troy Wilson said the company could not keep up.

“Smelters and refineries like those in Mount Isa and Townsville must be able to compete internationally to survive,” Mr Wilson said.

The company admitted these assets could close “this year if we cannot reach an agreement with the Queensland or federal governments.”

The iconic candy-striped copper stack was built in 1959. (Supplied: Mount Isa Mines Photographic Collection/ABC News: Sharon Gordon)normal

Exciting developments are on the horizon! In 2026, our copper smelter will undergo a four-year maintenance overhaul, and an impressive $30 million will be dedicated to ensuring peak performance and longevity.

Glencore is seeking a significantly larger bailout, drawing a direct comparison to the Whyalla Steelworks, which received a $2.4 billion package in February.

Queensland Premier David Crisafulli has been vocal on the need for these assets to stay operational, but neither the state nor federal government has promised any solid funding yet.

“Mount Isa’s been pretty good to Glencore over a long period of time, I think Glencore needs to be pretty good to Mount Isa now because that is a city on its knees,” Mr Crisafulli told the ABC earlier in June.

In a statement, a spokesperson for federal Minister for Industry and Innovation Tim Ayres said the Australian government was monitoring the situation and discussions were continuing. 

“Closure of the smelter would have downstream impacts for a number of facilities … the Australian government will work with the Queensland government on the path ahead.”

Ghost of towns past

Mary Kathleen was once home to about 1,000 residents. (Supplied: Mount Isa Mines Photographic Collection)normal

You only have to look at the remnants of once-bustling mining towns nearby to know what’s at stake.

The town of Mary Kathleen 50 kilometres from Mount Isa was born off the back of the uranium boom of the 1950s.

At its peak, the community was entirely self-sufficient, with homes, a school, cinema, even an Olympic-sized swimming pool.

But by 1982, when the ore deposit was exhausted, the town was stripped bare and sold off at auction.

The entire town was stripped bare and sold off after the mine's closure in 1982. 
Mary Kathleen uranium mining town in the 1950s. / The entire town was stripped bare and sold off after the mine’s closure in 1982. 

Mount Isa’s population is already projected to decline, and the city council is preparing for a worst-case scenario of 50 per cent if no other projects start up.

But long-time residents are confident Mount Isa won’t suffer the same fate as its neighbour.

Ms Burton believes Mount Isa will weather the storm and live on, regardless of industry closures. (ABC North West Qld: Emily Dobson)normal

“Mary Kathleen was totally different, it was a company town,” Ms Burton said.

“Mount Isa will survive; we will not be a ghost town.”

Looking to the future

President of Commerce North West Johno Neilsen points to Mount Isa’s critical role as a service hub in the outback as proof the city will survive.

“It won’t take one closure to put a death sentence to Mount Isa … it’s just more the picture of what that looks like is uncertain,”

Mr Neilsen said.

“We’ve got the largest hospital in the region; health is a major employer.

Johno Neilsen says it “would be remiss” for the government not to back Mount Isa. (ABC North West Qld: Emily Dobson)normal

“That’s the saving grace; there’s a lot of industries that are still prevalent in town.”

For Mr Peterson, the looming threat of further closures isn’t enough to make him pack up and abandon the city he’s lived in all his life.

“But we need to see some change on the horizon,” he said.

“We don’t need to know the nitty gritty, but we need to know there’s an answer.”

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