Government rescue package for Mt Isa copper smelter expected

A bailout of the Mount Isa copper smelter is expected to be announced on Wednesday morning.

The Sydney Morning Herald and others report that federal industry minister Tim Ayres will announce a rescue package for the loss-making smelter. The report did not cite a figure.

“The government’s approach is to do what we responsibly can to ensure that Australia is an export powerhouse for decades to come,” federal treasurer Jim Chalmers said yesterday. 

“It’s about the broader industrial capabilities of our country. We’re doing whatever we responsibly can to get a good outcome for the workers, families, communities and businesses.”

Welcoming the reports, the Australian Workers' Union said it “strongly endorsed” the support measures, saying they secured “more than 1,000 jobs” and protected Australia's critical metals processing capacity.

“Copper is critical to developing future technologies on our shores. You can't have a Future Made in Australia without the ability to refine our own metals and critical minerals,” said National Secretary Paul Farrow.

“This package demonstrates that both federal and state governments understand that maintaining our sovereign manufacturing capability isn't just about jobs today, it's about securing Australia's place in tomorrow's economy.”

Other struggling metal processing sites, such as the Tomago aluminium smelter in NSW, have been seeking assistance. 

In August, the Trafigura-owned Nyrstar lead and zinc facilities at Port Pirie and Hobart were awarded federal, South Australian and Tasmanian governments support worth a combined $135 million.

More to come.

Picture: credit Glencore

Further reading

Mt Isa mayor pleads for government intervention as 17,000 jobs hang in balance

AWU calls for smelter strategy amid growing crises

Federal, SA, Tas governments pledge $135 million to save Nyrstar’s struggling smelters, explore critical mineral diversification