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Daily Mail
a day ago
- Business
- Daily Mail
Ben Fordham tears into Anthony Albanese over major shutdown that could leave Australia at China's mercy
Prime Minister Anthony Albanese is under pressure to intervene after the closure of Australia's largest underground copper mine sparked fears the nation may be forced to rely on China for supplies. Swiss mining giant Glencore reportedly conducted its final blast on Monday, ending more than six decades of domestic production at one of the country's most historic copper mines in the outback town of Mt Isa, Queensland. 2GB host Ben Fordham unleashed on Albanese, warning that with Mount Isa's copper smelter and Townsville refinery also at risk, and that Australia's shrinking processing capacity could threaten national security and leave the sector exposed to global competition. 'Copper is as critical as it gets and this mine has just shut down after 60 years of operation,' he said. 'What happened to the PM's Future Made in Australia? 'Copper powers the so-called green, clean energy future. It runs through solar panels, electric vehicles, wind farms, power lines and batteries. 'Copper is also critical to data centres and defence systems. 'So why are we walking away? Well, smelting copper uses a huge amount of gas. Gas prices in Australia are among the highest in the world.' That's despite Australia being one of the largest exporters of liquefied natural gas in the world, as the net zero by 2050 target discourages gas exploration for domestic use. 'Glencore, the company that owns the mine, says it's no longer viable and it's going to get worse because Glencore is looking to shut the Mt Isa smelter, it's Australia's largest producer of sulphuric acid – a crucial chemical used in fertiliser manufacturing, so farmers will be forced to import fertiliser from overseas. 'And Glencore is looking at shutting Mt Isa's copper refinery, it's the country's only major copper processing facility, so we will be forced to buy copper from China.' Glencore confirmed it was preparing to place both the smelter and refinery into care and maintenance until they become financially viable. Mount Isa mayor Peta MacRae has been urgently lobbying state and federal politicians for a multi-million dollar bailout to save the facilities – and the 17,000 jobs that rely on them. 'This region has been good - no, great - to Queensland for generations,' she said. 'Mt Isa has quietly powered the State and national economy.' Cr MacRae said a Queensland Resources Council economic report found the Mount Isa resources sector had contributed almost $15 billion in economic value over the past decade. 'Queensland has funded hospitals, stadiums, and public services from the wealth of this region,' she said. 'Now it's time for Queensland and Australia to return the favour. This is our moment of need.' Cr MacRae stressed the issue was not a lack of demand for copper but a global oversupply of smelting capacity, which she blamed on 'global market manipulation.' 'Glencore is not a charity,' she said. 'They're competing in a distorted global market manipulated by foreign countries intent on cornering the copper supply chain. 'The smelter and refinery are no longer viable without urgent government action – and yet they are critical to Australia's sovereign capability and decarbonisation ambitions.' The closure is being framed as a national issue, with copper considered essential to Australia's clean energy future. 'If Australia walks away from refining and processing it here, we are handing over control to others who do not share our values or strategic interests,' she said. In an internal statement to employees last week, later leaked to the media, Glencore interim chief operating officer Troy Wilson said support measures proposed by the Queensland government fell 'well short' of closing the economic gap for the copper smelter and refinery. 'We need to know in the coming weeks whether there is a viable solution on the table from governments or whether we start to planning to transition the copper smelter and refinery into care and maintenance,' he said. 'Time is running out.' Glencore has warned the two copper assets could lose billions of dollars over the next seven years, blaming rising costs and an increasingly uncompetitive business environment. On the first sitting day of Parliament last week, veteran MP Bob Katter met with the new Minister for Industry and Innovation, Senator Tim Ayres, to push for a rescue package for Mount Isa without giving taxpayer money directly to Glencore. 'Let me be quite clear, we don't bail out foreign billionaires,' he said. 'If Glencore won't make the smelter work, the government should step in.
Sky News AU
21-07-2025
- Business
- Sky News AU
Energy crisis forces Labor to mull 'band aid solutions' for failing metal smelters as energy crisis plagues manufacturers
The Albanese government has been accused of considering 'band aid solutions' for major manufacturers struggling to stay afloat amid soaring power prices under Labor's renewable energy transition. Industry Minister Tim Ayres said Labor could provide taxpayer funds and long-term loans to assist ailing smelters crippled by energy costs and China-instigated trade distortions. 'The truth is, if these facilities didn't exist, governments would be trying to build them,' Mr Ayres told The Australian Financial Review. It comes as many smelters and refineries struggle to stay afloat in Australia. Rio Tinto-owned Tomago, which is Australia's largest aluminium producer, is seeking billions of dollars from the federal and NSW governments amid high power prices and as cost-effective and consistent renewables remain largely unavailable. Two Australian smelters owned by international minerals and metals producer Nyrstar are also under threat and the local CEO has begged various state and federal governments for a handout as losses mount to "tens of millions a month". Meanwhile, Glencore's local smelters and refineries similarly struggle in a massive blow to the Albanese government's Future Made in Australia plans. Centre for Independent Studies policy analyst Zoe Hilton told this revelation from Mr Ayres showed how Labor's net zero plans were hurting local industries. 'The government has shot itself in the foot on energy policy,' Ms Hilton said. 'The consequences of its commitment to a wind- and solar-dominated grid are being acutely felt by smelters and the pain will continue until the root cause is addressed. 'Equity injections and long-term loans for smelters are merely band aid solutions that will force taxpayers to pay twice – first for underwriting renewable energy projects and second for propping up industries that can't afford electricity price hikes driven by renewables.' Labor has vowed to make the nation a 'renewable energy superpower' with an energy mix of 82 per cent renewables by 2030 and green energy driving local manufacturing. The Albanese government is looking to boost this through production tax credits for leading Australian aluminium smelters, including Tomago, and give $2 billion back to help with the energy transition. Concerns over Australia's long term manufacturing capabilities also arose from AI Group chief executive Innes Willox who warned that 'bailouts cannot be for business as usual'. 'Short-term relief measures must be complemented by a long-term perspective that addresses the energy, skills and technology challenges weighing on our metals sector,' Mr Willox told He said the upcoming productivity roundtable hosted by Treasurer Jim Chalmers, where the Albanese government's second term economic agenda will come under the microscope, is crucial for examining problems plaguing manufacturing in Australia. 'It is a seminal moment for industry and a legacy moment for the country as a whole,' the AI Group boss said. 'We just can't keep going as we have been because what's got us to this point isn't going to make us successful in the future.' Soaring energy prices have particularly hurt the metals industry in Australia since the pandemic. Mr Willox said manufacturer gas costs are up 48 per cent for the past five years and for trade exposed industries like metals, passing these customers onto consumers is not possible. Other concerns about metal smelting in Australia come from Nyrstar boss Matthew Howell, who recently asked the government for help upgrading the company's facilities to make it more competitive in the global market. Mr Howell said the Chinese government subsidises companies to purchase Australian materials at prices local smelters could not afford. China then subsidises the processing of these materials and enforces export controls on the finished metals, hurting Australian producers in the process. Meanwhile, Glencore's head of corporate affairs Cass McCarthy lamented the company's ability to compete while high energy and labour costs hurt its profitability. 'This is bigger than Glencore and goes to the heart of state and federal government critical minerals policies when you have a number of smelters and refineries across Australia clearly at breaking point,' Ms McCarthy said, per The Australian. The NSW government in June confirmed it was in talks to save Tomago, which uses about 10 per cent of the state's power supply and makes about 37 per cent of the nation's aluminium. Premier Chris Minns stressed Tomago was a 'big employer in NSW, it's a dynamic part of the state, the Hunter and manufacturing is a big part of its future'. 'It's difficult for me to speculate about what the next steps are,' Mr Minns told reporters. 'In order for us to have an effective intervention, we need to have commercial discussions with the owners and operators of (Tomago). That's what we're doing.' Rio Tinto's chief executive Jakob Stausholm earlier this year flagged concerns about the producer's electricity costs where he warned power price contracts beyond 2028 would render Tomago unviable.
Sky News AU
20-07-2025
- Business
- Sky News AU
Shadow treasurer Ted O'Brien warns Albanese government ‘definitely going after taxing capital' at economic round table
Shadow treasurer Ted O'Brien has accused the Albanese government of plotting to raise taxes on capital, ahead of Treasurer Jim Chalmer's economic round table. Mr O'Brien told Sky News Sunday Agenda that the government was laying the groundwork to increase taxation across key areas of the economy. It comes after leaked treasury advice warned that the government would need to hike taxes or cut spending in order to avoid massive budget blowouts. 'I think it's clear the government wants new taxes, and I think that's one of the things we have to prosecute over this first sitting of the parliament,' Mr O'Brien said. 'They're definitely going after taxing capital. They're going after taxing investment. They're going after taxing companies. 'I believe they have an agenda to tax — there's just no doubt about that.' The government has invited economists and business leaders to the economic round table from 19 to 21 August 2025 to address possible tax reform. However, Mr O'Brien questioned the integrity of the roundtable, suggesting Labor may already have made up its mind on key economic reforms. 'My fear here is Labor might actually have an agenda already, and that this is nothing but a talk fest,' he said. The opposition has called for a broader, bipartisan approach to tax reform, with Mr O'Brien signalling the opposition was open to a 'holistic' discussion. 'If it's done holistically, if it's looking at more efficient taxation, if you're looking at fixing up what is currently a mess with Labor being overly reliant on income taxes.' Labor is facing mounting fiscal pressures including ballooning NDIS costs, an expanding defence budget, and the cost of the Future Made in Australia program. Former Treasury secretary Ken Henry recently warned that without stronger productivity, the government would be forced to either raise taxes or cut spending. 'If we continue on that trajectory … we will have no option but to raise taxes,' Mr Henry told the National Press Club on Wednesday.
Sky News AU
16-07-2025
- Business
- Sky News AU
Labor will be forced to 'raise taxes quite significantly' or cut spending if productivity stalls, Ken Henry declares
Labor has been warned it will be forced to hike taxes quite significantly if productivity continues to stall as the Albanese government powers on with its second term economic agenda. Former Treasury secretary Ken Henry faced the National Press Club on Wednesday where he weighed in on the economic challenges facing Australia. Mr Henry, who authored a highly recognised white paper on tax reform in 2010, warned Labor that lagging productivity would mean the government will be forced to either hike taxes or cut spending. It comes as Labor faces growing fiscal pressures on the budget such as the ballooning NDIS and demands for Australia to increase defence spending. 'If the budget is to meet these growing spending pressures, then we've got two options: We either increase taxes as a share of GDP, or we grow the economy faster,' Mr Henry told National Press Club on Wednesday. He said the slump in productivity that continues to plague Australia's economy would force the government to find revenue elsewhere. 'Over the decade of the 1990s, average productivity growth was 2.31 per cent a year,' Mr Henry said. 'Over the past 25 years, it's averaged 0.98 per cent a year. That's a pretty fundamental difference. 'If we continue on that trajectory … we will have no option but to raise taxes. And quite significantly, by several percentage points of GDP ... or cut spending.' Mr Henry also voiced concerns about the Environment Protection and Biodiversity Conservation Act (EPBC) during his address, which he said needed an overhaul to boost productivity. 'I can think of other reforms to boost productivity. Some even harder, though none more important. And if we can't achieve environmental law reform, then we should stop dreaming about more challenging options,' Mr Henry said. He argued changes to legislation are critical for Labor as it wants to balance environmental concerns with ambitious projects, including delivering 1.2 million new homes and continuing with the Future Made in Australia plan. It would also mean changes to laws surrounding mining and critical minerals projects. 'The Australian government has an ambition to massively increase critical minerals exports and downstream processing here in Australia,' Mr Henry said. 'This means more mines, new industrial facilities, and more pressure being loaded onto broken EPBC project assessment and approval processes.' Labor is considering a raft of changes to boost productivity. The nation's economy will take centre stage at the productivity roundtable in August where leaders across business, economics, politics and unions will come together. A coalition of 28 businesses and industry groups have listed overhauling the EPBC as a major priority. Australia's enormous superannuation sector, alongside major industries including artificial intelligence and manufacturing, will also come under the microscope.
Sky News AU
16-07-2025
- Business
- Sky News AU
Fix environmental laws to productivity boost, Australian Climate and Biodiversity Foundation chair Ken Henry tells Labor
Fixing national environmental laws holds the key to boosting productivity in Australia, a leading environmental expert has told the Albanese government. Ken Henry, the former Treasury secretary who handed down a highly recognised white paper on tax reform, now serves as chair to the Australian Climate and Biodiversity Foundation and will address the nation's flailing productivity at the National Press Club on Wednesday. Productivity has become a major focus point for the Albanese government in its second term as it looks to bolster Australia's growth. Mr Henry will tell attendees the Environment Protection and Biodiversity Conservation Act (EPBC) - Australia's main environment legislation - needs a radical overhaul. 'I can think of other reforms to boost productivity. Some even harder, though none more important. And if we can't achieve environmental law reform, then we should stop dreaming about more challenging options,' Mr Henry will say. He will says changes to legislation are critical for Labor as it wants to balance environmental concerns with ambitious projects, including delivering 1.2 million new homes and continuing with the Future Made in Australia plan. This also includes changes to laws surrounding mining and critical minerals projects. 'The Australian government has an ambition to massively increase critical minerals exports and downstream processing here in Australia,' Mr Henry will say. 'This means more mines, new industrial facilities, and more pressure being loaded onto broken EPBC project assessment and approval processes.' He will call for a 'quick and efficient' delivery of the ambitious projects in a 'way that not only protects, but restores, nature' as Labor attempts to reduce carbon emissions. 'To put it bluntly, there is no chance of Australia meeting stated targets for net zero, renewable energy, critical minerals development, housing and transport infrastructure without very high-quality national laws that set clear environmental standards for major projects, a strong national decision maker respected by all parties, and significant improvement not only in Commonwealth environmental protection systems, but also in those of the States and territories,' Mr Henry will say. 'And all these projects will be critical to enhancing economic resilience and lifting flagging productivity growth. 'Boosting productivity and resilience relies upon environmental law reform.' Labor is considering a raft of changes to boost productivity. The nation's economy will take centre stage at the productivity roundtable in August where leaders across business, economics, politics and unions will come together. A coalition of 28 businesses and industry groups have listed overhauling the EPBC as a major priority. Australia's enormous superannuation sector, alongside major industries including artificial intelligence and manufacturing, will also come under the microscope.
