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Daily Mail
6 days ago
- Business
- Daily Mail
Why this picturesque Aussie city could soon be wiped off the map
Thousands of North Queensland jobs could be lost as Swiss mining giant Glencore considers shutting down its operations in Mount Isa and Phosphate Hill. Business advocacy group Townsville Enterprise said the ripple effects could put up to 17,000 jobs at risk across the Northern Queensland economy. Mount Isa, a city with a population of about 20,000 in the state's Gulf Country region, is largely dependent on mining, in particular Glencore's copper and silver-lead zinc facilities. A memo circulated to staff on Wednesday painted a bleak outlook. Glencore's interim CEO warned the company is 'fast reaching the point' where it must place both facilities into care and maintenance unless a rescue deal is reached. 'To date Glencore has been absorbing losses hopeful that a viable solution could be found,' the memo stated. 'However, we are fast reaching the point at which Glencore cannot continue to absorb these losses. We need to know in the coming weeks whether there is a viable solution on the table from governments.' The closure of the two copper operations would directly impact around 550 Glencore workers, with an additional 500 jobs under threat at Dyno Nobel's Phosphate Hill operations. Roland Lobegeiger, field services manager at mechanical firm Isadraulics, said the consequences for Mount Isa would be far-reaching. 'Without it, the town's not going to be here,' he told 'There are other mines, there would be other work in the area, but would the town recover? It's hard to say,' he said. 'It would be a significant change for a lot of businesses, homes, house prices – you name it. It's definitely a bit of a dark cloud over the area. Everyone's still optimistic that they won't shut it down, but no one knows.' Senior Glencore executive Suresh Vadnagra told The Australian the miner was still hopeful of a partnership with government to keep the sites alive, potentially including a public equity stake. 'We have been engaging with government for the past five months,' he said. '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. Time is running out.' Glencore expects the two copper assets could lose billions of dollars over the next seven years, citing rising costs and an increasingly uncompetitive business environment. The warning comes amid broader struggles across Australia's smelting sector. Rio Tinto-owned Tomago, the nation's largest aluminium smelter, is also seeking government support as it battles soaring energy prices and competition from China. Industry Minister Tim Ayres signalled the federal government was open to stepping in, telling The Australian Financial Review. 'The truth is, if these facilities didn't exist, governments would be trying to build them,' he said. Meanwhile, Dr John Coyne, Director of National Security Programs at the Australian Strategic Policy Institute warned the closure could risk national security. 'Without access to local smelting, transport and processing costs will increase, threatening their viability and accelerating the decline of Australia's domestic metals processing sector.' Coyne said. He argued that China, the United States and Europe were moving to secure their own supply chains, in the case of a crisis. 'Australia's failure to think strategically puts its long-term prosperity at risk. Copper demand is expected to double over the next decade' he said.
News.com.au
7 days ago
- Business
- News.com.au
Two towns face jobless wave as miner warns it may halt operations
North Queensland locals have been left on edge as Swiss miner Glencore reveals it is considering shutting down two operations, placing thousands of jobs in jeopardy. The Mount Isa copper smelter and Townsville copper refinery directly employ 550 people, with 500 jobs also threatened at Dyno Nobel's Phosphate Hill operations, but lobby group Townsville Enterprise estimates 17,000 jobs are connected to the downstream copper assets. Without government assistance, the company will have to place the Mount Isa and Townsville operations into care and maintenance, according to an internal memo to staff from Glencore's interim chief operating officer on Wednesday morning. Roland Lobegeiger, a field services manager for Isadraulics, which services hydraulic component systems, told the move would be a 'significant loss' not just for his company, but the town of Mount Isa. 'Without it, the town's not going to be here,' Mr Lobegeiger said. 'There are other mines – there would be other work in the area, but would the town recover? It's hard to say. 'It would be a significant change for a lot of businesses, homes, house prices – you name it. 'It's definitely a bit of a dark cloud over the area. Everyone's still optimistic that they won't shut it down, but no one knows.' Mr Wilson's internal memo painted a grim picture of the company's position in North Queensland. 'To date Glencore has been absorbing losses hopeful that a viable solution could be found,' he wrote, according to the Townsville Bulletin. 'However, we are fast reaching the point at which Glencore cannot continue to absorb these losses. 'We need to know in the coming weeks whether there is a viable solution on the table from governments. 'Glencore is genuinely disappointed at the prospect of placing the smelter and refinery into care and maintenance if we do not receive adequate government support.' Talks between Glencore and the Queensland and federal governments have yet to reach a solution, with the miner on track to lose billions of dollars from the two operations over the next seven years. Senior Glencore executive Suresh Vadnagra said the company remained open to taxpayers taking a big equity stake in the refinery and smelter. 'Time is running out,' Mr Vadnagre told The Australian. 'We have been engaging with government for the past five months. '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.' It comes as smelters and refineries are struggling to operate across Australia. The country's biggest aluminium producer, the Rio Tinto-owned Tomago, has requested billions of dollars from the federal and NSW governments amid high power prices and competition with China. The Labor government has held out the possibility of providing loans and taxpayer funds to prop up Australian smelters. 'The truth is, if these facilities didn't exist, governments would be trying to build them,' Industry Minister Tim Ayres told The Australian Financial Review.
Sky News AU
7 days ago
- Business
- Sky News AU
About 17,000 jobs in jeopardy as Glencore warns it may have to shut down its operations at Townsville and Mount Isa
About 17,000 jobs could be in jeopardy as massive resources company Glencore reveals its considering halting operations. Two local operations in North Queensland at the Swiss metals Glencore are in strife despite a verbal offer of financial incentives from the Queensland government, including payroll tax deferral, to prevent collapse. An internal memo to staff from Glencore's interim chief operating officer revealed the company could soon place the two smelters into care and maintenance until conditions improved. 'To date Glencore has been absorbing losses hopeful that a viable solution could be found,' Mr Wilson wrote, per The Townsville Bulletin. 'However, we are fast reaching the point at which Glencore cannot continue to absorb these losses. 'We need to know in the coming weeks whether there is a viable solution on the table from governments. "Glencore is genuinely disappointed at the prospect of placing the smelter and refinery into care and maintenance if we do not receive adequate government support.' It comes as the company is expected to report a multi-billion-dollar loss over the next seven years from just two of its operations at Townsville and Mount Isa. Glencore directly employs about 550 workers, while lobby group Townsville Enterprise estimates that 17,000 jobs are connected to the nearby copper assets. Mr Wilson said offers from the state government were not enough and Glencore was now turning to Canberra for further support. 'Glencore is now urgently seeking details from the federal government on their proposed national smelting/refining strategy,' Mr Wilson said. Senior Glencore executive Suresh Vadnagra said shutting down was a last resort and that the company was open to the public taking a large stake in the beleaguered company. 'Time is running out," Mr Vadnagra said, according to The Australian. "We have been engaging with government for the past five months. "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." The smelter's strife comes as 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. Many smelters and refineries are struggling 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".
