Glencore to close Mount Isa copper mine, sparking concern for the mining city

Glencore has announced it will close all copper mining operations at its Mount Isa mine — one of the biggest copper mines in the country. 

The multinational broke the news to employees this morning that all copper mining at the site will cease in 2025.

At least 1,200 employees will be affected, including contractors, suppliers and businesses that rely on the largest mining operation in north-west Queensland.

The closure calls into question the future of Mount Isa’s 20,000-strong community, whose economy has been propped up by the mine.

In a statement, Glencore cited low-quality ore as the reason for the major closure.

“The remaining mineral resources are not economically viable due to low ore grades and areas where, due to geological conditions, safe extraction can’t be achieved using current technology, this all coupled with ageing infrastructure,” the statement said.

The region is home to dozens of smaller mines that use Glencore’s smelters in Mount Isa, while concentrate from interstate and overseas is also processed at the smelters.

The copper smelter, one of two in Australia, would continue operating to 2030, subject to approval of additional capital investment, Glencore said.

Mount Isa Mines’ other metals assets including the George Fisher zinc-lead-silver mine, the zinc-lead concentrator, and lead smelter in Mount Isa, as well as the copper refinery in Townsville, would all continue operating.

Glencore’s Lady Loretta zinc mine, a fly-in, fly-out operation 140 kilometres north-west of Mount Isa, will also close in 2025.

Chief operating officer of Glencore’s zinc assets in Australia, Sam Strohmayr, said that after 60 years of copper mining, the Mount Isa copper operation has reached its end.

“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.

“We understand this announcement will be upsetting and that is why we’re trying to give people as much time as possible to digest this news and to start to plan what this transition period will look like for them,” Mr Strohmayr said.

The company would look to retain, re-deploy and retrain as many employees as possible, while others would be offered redundancies as a last resort, he said.

100 years of mining

Next year, Mount Isa Mines will mark 100 years of operation after it was founded in 1924 following the discovery of rich lead-zinc-silver and copper deposits.

The mine was acquired by Glencore in 2013.

Mr Strohmayr said the company was still invested in its other metals assets in Mount Isa, including the George Fisher mine — one of the largest zinc-lead-silver operations in Australia.

“We are actually looking to ramp up production at George Fisher and have ongoing zinc and lead operations and the two smelters continuing, so we have substantial operations in Mount Isa that we are invested in,” he said.

Shadow Minister for Resources and Northern Australia Senator Susan McDonald said the closure was concerning.

“Mount Isa plays a vital role as a hub for north-west Queensland commerce, healthcare and schooling and I am deeply concerned about the effect this announcement will have on Mount Isa mine workers and the town’s business owners,” she said.

“North-west Queensland’s rich potential should not be squandered or ignored, and the Labor Government needs to do more to encourage a pipeline of mining ventures to develop or expand with confidence in order to secure the future of our regional communities.”

Government support package

In response to the closure, the Palaszczuk government has announced a support package of up to $50 million for mine workers and the Mount Isa community.

Up to $30 million will be allocated to accelerate development of resource projects in the North West Minerals Province over the next five years.

Up to $20 million, to be matched dollar-for-dollar by Glencore, will go toward an economic structural adjustment package for Mount Isa and North West Queensland.

Treasurer and Minister for Trade and Investment Cameron Dick announced the package in Brisbane.

“My message today is clear. Our Government will back your city and your region all the way,” he said.

Global demand for copper

Despite the major closure, other copper mines are expanding across the region.

Earlier this year, Evolution Mining extended the life of its Ernest Henry copper mine by 17 years to 2040 to meet global demand for the metal.

Meanwhile, South African miner Harmony Gold recently acquired the Eva Copper Project, 75 kilometres north of Cloncurry, citing opportunities to be part of the global movement towards green energy.