Table of Contents
Key Points
- The Swiss mining giant, led by South African CEO Gary Nagle, confirms the historic Australian mine will cease production by month-end.
- Initial estimates of 1,200 layoffs now reduced to 500, with 170 workers redeployed and some opting for retirement or resignation.
- Glencore seeks government funding to maintain operations, warning Australia’s smelting industry faces pressure from rising global competition.
Glencore Plc, the Swiss commodity trading and mining giant led by South African executive Gary Nagle, has announced the closure of Mount Isa Copper Mine, one of Australia's largest and oldest copper operations, by the end of July. Located in north-west Queensland, the mine has been a vital part of Australia’s mining landscape for over a century.
The final ore extraction will take place around July 29 or 30, marking the end of the mine’s operations. This decision follows Glencore's 2023 assessment that Mount Isa Copper Operations (MICO) and its copper concentrator were no longer financially viable.
Job cuts lower than expected
When the closure was first announced, up to 1,200 jobs were at risk. However, Glencore has since revised this figure to about 500. Sam Strohmayr, chief operating officer of Glencore’s Australian Zinc and Copper Assets, noted that 170 workers have been redeployed to other company operations, while some employees have chosen early retirement or resignation.
"We've had some natural attrition, and for roughly 300 employees nearing the end of their careers, redundancy payouts are being offered as a gesture of appreciation," Strohmayr said. As of now, only five employees have been formally made redundant.
Mount Isa’s legacy and economic impact
Since its establishment in 1924, Mount Isa Mines has been integral to Australia's economy, initially focused on lead, silver, and zinc. During WWII, it shifted to copper production, becoming Australia's second-largest copper producer by 1953.
The mine has played a significant role in driving economic growth in northwest Queensland, employing over 70 percent of Mount Isa’s 19,000 residents, according to a 2020 Queensland Resources Council report. Glencore acquired the complex in 2013, citing rising operational costs and a global downturn in smelting profitability as key reasons for the closure of the copper mine.
Uncertain future for the smelter and refinery
The future of Mount Isa’s copper smelter and the Townsville refinery now hangs in the balance, as Australia’s smelting industry faces growing competition from Asia and Africa. Strohmayr pointed out that Australian smelters lack the support seen in other regions, with Mount Isa being one of only two such facilities in the country. This smelter plays a crucial role in ensuring Australia’s copper supply, particularly for processing imported concentrates.
Glencore is pushing for government assistance to help with the vital maintenance needed, with a decision on whether to rebrick the smelter expected later this year. Deputy Mayor Kim Coghlan expressed concern about the uncertain future, urging Glencore to sell the mine if they do not intend to continue operating it.
“No one knows what happens after July,” she said, stressing the need for economic diversification. Coghlan also warned that halting mining operations would lead to a significant drop in government royalties. “If mining stops, revenue drops—where will the funds to replace it come from?” she asked, calling on both state and federal officials to act swiftly.
Glencore’s global strategy and future focus
Founded in the 1970s as a trading firm, Glencore has grown into one of the world’s largest mining and commodity companies, with operations in 35 countries and a workforce of more than 150,000 employees. Under CEO Gary Nagle’s leadership, the company has continued its strategic expansion in the energy and mining sectors, with a focus on higher-growth assets.
In 2024, Glencore’s revenue increased by 6 percent to $230.94 billion, bolstered by strong performance in metals and marketing. The company recently announced a R6 billion ($329 million) investment in its unit Astron Energy to upgrade its Cape Town refinery to meet Euro 5 fuel standards by 2027. As the company winds down its copper operations at Mount Isa, Glencore is shifting its attention toward investments in the global energy and metals markets.
