Australian region facing 17,000 job losses as copper pressures hit
Glencore is closing its 60-year-old copper mine at Mount Isa, about 900km inland from Townsville, with its official last day on Thursday.
But that might not be the end of upheaval for the region.
The multinational resources giant is also considering the future of its copper smelter and its refinery, located in Mount Isa and Townsville respectively, with models predicting a $2.2 billion loss by 2031.
Mount Isa Mayor Peta MacRae told news.com.au that some confidence had remained in the community since the underground mine's closure was announced, as many jobs could be moved to Glencore's nearby zinc mine.
But, she said, losing the smelter would have massive impacts not only for Mount Isa but the region and its interconnected industries.
'I mean, that was a pretty big blow (the mine closure), but we were going to be able to manage it,' Ms Macrae said.
'I think the closure of the smelter would be absolutely devastating. They're talking 18 per cent unemployment in Townsville.
'So I just don't think I can overstate the problem, to be honest.'
The mayor is in Canberra this week to lobby federal government ministers in the hope of securing a plan to keep the sites open.
Glencore is losing tens of millions of dollars per month on its copper operations due to economic pressures and growing global competition.
China has seen a government-subsidised copper smelting boom over the past decade and now accounts for half of the world's refinery capacity.
Smelters also run on gas, with Australia's high prices adding financial stresses.
Not only does it provide local jobs, but the Mount Isa smelter's by-products also fuel another large employer in Dyno Nobel's Phosphate Hill fertiliser plant.
With the copper mine's closure, the smelter is now fed by smaller third-party mines which would also face significant pressures if it closed down.
Gavin Starr, who runs Custom Steel Fab, said hundreds of small business and supporting industries would be affected if the plants close.
'You'd be hard pressed to find someone in Mt Isa who isn't directly affected,' he said.
'We feel fear, frustration and disbelief.'
Glencore has confirmed it was currently reviewing a 'detailed offer … of support for the copper smelter and refinery' from the Queensland government.
A spokesperson said the company was 'grateful for this offer of assistance' but noted a 'quite significant' economic gap remained.
'Bridging it will require support from both Queensland and federal government,' they said.
'At present we don't have anything on the table from the Federal Government but we look forward to engaging further with Minister (Tim) Ayres in the coming weeks.'
A spokesperson for Industry and Science Minister Mr Ayres told the Australian Financial Review that framing any talks as a 'bailout' was not correct.
'They are a serious, necessary assessment of Australia's capacity to process strategic and critical minerals now and into the future,' they said.
'We will continue to work closely with industry and state governments to advance our domestic industrial capability, in line with our Future Made in Australia agenda.'
Ms MacRae has said the Mount Isa resources sector had contributed $15 billion to the economy over the past decade and the region had 'asked for very little' in return.
She told news.com.au that the dilemma facing the area was 'right in the sweet spot' of federal government plans on Australian industry, critical minerals and developing northern Australia.
'So we might not want to call it a bailout,' Ms MacRae said.
'But what is essentially needed is economic support for a whole region to make everybody viable, because you can't have your small copper mines without the smelter.
'So it has to be a whole package. But all of that takes time, and we don't have time like that.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
3 hours ago
- News.com.au
Body corporate changes force sellers to reveal hidden costs
Buyers of lots in community title schemes will no longer fear being ambushed by unknown fees and outstanding debts following new seller disclosure requirements from August 1. Under the changes, bodies corporate must provide the seller, upon request and a fee, with a body corporate certificate (BCC). In addition, bodies corporate must supply a Community Management Statement (CMS) which confirms the name of the body corporate and the regulation module that applies. The CMS usually contains the registered by-laws, including those that grant exclusive use to lots within the scheme. The heralded improvements will enhance transparency, consistency, and efficiency within Queensland's community titles sector. They will also empower buyers who will have greater upfront knowledge of the lot they want to purchase in a community titles scheme. The BCC is a 10-page document that contains basic as well as intricate information relating to the lot being put up for sale. The information includes how to contact the body corporate, accessing records and the regulation module (accommodation, commercial, smalls schemes or standard) that applies to the scheme. No longer affordable': Brisbane property boom hits the skids It will also provide financial information such as levies, insurance coverage and, more importantly, if there are any outstanding contributions or body corporate debts associated with the lot. There have been many new owners in the past who claimed to have been blindsided by outstanding debts associated with their purchase. If they had that information beforehand, they may have been able to negotiate the price down to compensate for the outstanding debt. The new disclosure requirements will allow prospective owners to factor in outstanding debts before making an offer to buy. Be mindful that even though the BCC contains vital information that could put a buyer at ease, it is not a silver bullet. There are still reasons for the buyer to conduct body corporate searches through their conveyancer. For instance, the BCC does not include information regarding: - building defects - body corporate expenses and liabilities - past, present or future body corporate disputes - court actions or orders made against the body corporate by an adjudicator, a tribunal or a court. The 10-page BCC has been available for download from early July. It allows bodies corporate to familiarise themselves with the information required which came into effect on August 1. It is incumbent on the seller to provide the BCC and CMS to the real estate agent when the property is listed for sale. Govt pays $3.3m for unliveable derelict house For bodies corporate, a lot of the information in a BCC will only need to be compiled once as it is an ongoing document. It will only need to be updated when changes such as amended by-laws are passed. The CMS has two schedules of lot entitlements – the Interest Schedule Lot Entitlements and the Contribution Schedule Lot Entitlements. These two schedules determine how the running costs for the administration, maintenance and insurance of common property, and the cost of utility services (water/electricity), are shared between lot owners. This will provide additional transparency on the costs and how they calculated for each lot. To find out more about buying a body corporate property use this link. * Jane Wilson is the Queensland Commissioner for Body Corporate and Community Management.
ABC News
9 hours ago
- ABC News
Cairns bids to be Hawthorn's second home once Tasmania enters the AFL
Cairns is pitching itself as a potential second home for AFL powerhouse Hawthorn, should the Hawks' long-standing deal with the Tasmanian government end in two years. Football powerbrokers in Far North Queensland want to lock in regular AFL men's premiership matches, which Cairns last hosted in 2022. AFL Cairns and the Queensland government already have a three-year deal with Hawthorn, whose AFLW side will play a third home game in as many years at Cazalys Stadium next month. AFL Cairns and Cazalys Stadium general manager Craig Lees said he made the case for more elite men's football when AFL chief Andrew Dillon visited Far North Queensland last month. Mr Lees said Cairns wanted to replace Launceston as the Hawks' interstate base once the Tasmania Devils entered the AFL — a move which could bring up to four home-and-away matches a year to the far north from 2028. "That is our focus, to try and see if we can unlock those destination games," he said. Hawthorn has publicly declared its desire to continue hosting matches in Tasmania even after the Devils enter the competition, despite opposition from Devils CEO Brendon Gale. The Hawks have been contacted for comment. Cairns is also exploring the idea of teaming up with the Northern Territory, which intends to bid for a licence to become the AFL's 20th team should the code continue to expand. Mr Lees confirmed he had already had discussions with AFLNT. "I don't think a one-out 20th licence in Cairns works," he said. "However, we are happy to play our role in what that may look like in the future." Cairns Mayor Amy Eden, who also met with Mr Dillon, is a former Territorian and has backed a partnership with the NT. "One of the things we pitched to Andrew Dillon was maybe a northern Gather Round, where we share it with Darwin," she said. "We are quite regional in that sense, and if we can produce world-class events and do it together, then it just cements both of our successes in the future." Cazalys Stadium is hosting a Twenty20 cricket series decider between Australia and South Africa on Saturday night, ahead of a one-day international on Tuesday. Mr Lees said another goal was to secure Olympic cricket if the sport was added to the 2032 games program. Assistant state tourism minister Bree James said the government was "unashamedly chasing sporting events" to bring to Queensland. "I think all options are on the table and I think our minister for sport will be looking at any negotiations he can that improves the sport we have in our state," she said. One of the Barron River MP's constituents, 12-year-old Ollie Hourigan, has launched an online petition to bring an AFL team to Cairns. "I've been putting that on my social media for him, so I'm very supportive of having an elite team like that here in Far North Queensland," Ms James said.
SBS Australia
10 hours ago
- SBS Australia
Unemployment lowers with record female participation
Unemployment down as 60,000 jobs filled in July South Australia's Premier says there is little hope the algal bloom will resolve in coming months Australian Molly Picklum wins Tahiti Pro Today's job figures show Australian women's participation in the workforce has hit a record high. The Australian Bureau of Statistics has revealed 25 thousand more people have been employed in the past month, with women filling 40 thousand of the 60 thousand fulltime jobs taken in July. July's unemployment was 4.2 per cent, a slight improvement from 4.3 per cent joblessness reported for June. Falling unemployment is considered one of the key indicators of the health of the economy. Average earnings for fulltime jobs in May this year, excluding penalty rates, has also risen to 2010 dollars a week, marking the first time the figure has exceeded two thousand dollars. South Australia's Premier reports the algal bloom off the coast that has become a major ecological disaster, is likely to persist into spring and summer. Peter Malinauskas says of the seventeen sites being monitored for algae growth, seven have increased, five have decreased and five remain steady. "We are looking for cooler weather and we're looking for less sunlight and in the absence of those it is reasonable to assume the algae will continue to persist, at least on that basis, barring other interventions." The Federal Environment Minister and Opposition leader toured the area this week, to see the impacts of the bloom. Opposition Leader Sussan Ley has renewed calls by her party for the Prime Minister to meet with Donald Trump face to face. The Liberal party leader is at the Australian American leadership dialogue in Sydney today, meeting with the US congressional delegation. Ms Ley said the relationship between the US and Australia was drifting and described Australia as a bystander - but would not confirm whether any American representatives had raised concerns over the Prime Minister's move to recognise Palestinian statehood. "We had insightful conversations and important conversations. Now, it is nearly 280 days ((sic)) since the president was inaugurated and we still have don't have the meeting between our Prime Minister and the American president. And this relationship is now more important than ever." New South Wales police have charged a woman with 12 offences related to an alleged sophisticated fraud and money laundering operation in Sydney. An investigation by a special team of detectives, uncovered a syndicate that was allegedly using stolen personal information to apply for loans and buy luxury "ghost" cars that didn't exist. Police allege the woman has netted 4 million dollars' worth of assets, through involvement in a network that extended beyond car financing to large-scale personal, business and home loan fraud. Ten people have previously been charged under strike force Myddleton and remain before the courts, with the NSW Crime Commission having already seized $53 million in assets. This weekend, K-Pop fans in Australia will fight to become the best K pop cover dancers in the country. The winner of the event, which will be held on Saturday in Parramatta in Western Sydney, will qualify for the World Finals in Korea this September. Korean American artist Audrey Nuna is touring Australia. The rapper is the singing voice of Mira in Netflix's global hit animation, K-Pop Demon Hunters and spoke with SBS Korean the popularity of the new film. "Actually, when I was recording the songs for this movie I did tell my mom I was like mom I think this movie is gonna be its gonna do really really well because I think you know so many people have a love even people who are not Korean have such a love for Korean music Korean pop Korean culture." K-Pop is the name of the globally renown pop music movement out of South Korea, in which musicians draw influence from Western dance music, hip-hop, R&B and rock. --- Australian surfers Molly Picklum and Jack Robinson have dominated at the punishing Teahupo'o reef to take out Tahiti Pro titles. Picklum pipped American rival Caitlin Simmers on points, to win the women's competition before her Fiji world title charge. The waves jacked up just as Picklum hit the water on Thursday; and a Simmers wipe-out on what could have been a 10-point ride gave Picklum the edge. She described it as among the best experiences of her life. "You just have to make sure you make the right waves, I had televru in my corner at this event. So he made it a world, he made it way easier for me to read and be one with Teahupo'o and look at the mountains and just feel like they have my back out here." West Australian Jack Robinson Robinson needed to win in Tahiti to get into the final five who will compete for the world title in Fiji at the end of the month. With his Teahupo'o win, Robinson has surged into the World Surf League's finals at compatriot Ethan Ewing's expense.
