Glencore Seeks Australian Government Support for Copper Processing Operations

Glencore

Smelter and Refinery Under Review Amid Global Subsidy Pressures

Global commodity giant Glencore is urging both state and federal governments in Australia to support its copper processing facilities in Queensland. The company’s request, made public on April 2, coincides with its strategic reassessment of operations at the Mount Isa copper smelter and Townsville copper refinery, both of which may close by 2026 without government assistance.

While Glencore did not specify the nature of the aid, the firm cited Chinese and Indonesian subsidies to their respective smelting sectors as a competitive disadvantage.

This highlights growing pressure on Australian metal producers to remain viable amid intensifying global cost competition.

Black Star Mine Revival and State Collaboration in Focus

Queensland’s Minister for Natural Resources and Mines, Dale Last, confirmed he is working “collaboratively and urgently” with Glencore. This includes evaluating the timeline and restart plans for the Black Star Open Cut project, a critical copper, zinc, and lead mine in Mount Isa, targeted for reopening in 2027.

Previously, Glencore suggested the Mount Isa smelter could remain operational until 2030, pending capital approvals. However, the latest review indicates that 2026 is the new closure threshold unless government support is secured.

Regional Economic Impacts and Sulphuric Acid Supply Chain Risk

The potential shutdown of Glencore's smelter would ripple through the Queensland industrial ecosystem. Fertilizer producer Dyno Nobel depends on sulphuric acid from the Mount Isa facility for its Phosphate Hill operations. The company is now forecasting a 7% reduction in Phosphate Hill output, adjusting projections to 740,000–800,000 tonnes for fiscal 2024–2025.

Dyno Nobel is also undergoing a strategic review of Phosphate Hill, with plans to divest the asset and minimize risks tied to inputs like gas and sulphuric acid. Meanwhile, Glencore reaffirmed it will close its Mount Isa mining complex by July 2025, per plans announced in October 2023.

The Metalnomist Commentary

Glencore’s request underlines the shifting economics of copper processing. As subsidies reshape smelting competitiveness globally, Australia must weigh the strategic value of domestic metal infrastructure. Queensland’s support—or lack thereof—will signal whether Australia is prepared to shield its critical mineral capacity from global subsidy shocks.