Australian federal and Queensland state authorities have offered global producer Glencore a support package for its Mount Isa copper smelter and Townsville refinery, the company told Argus today.
The deal is not final. Glencore is hopeful that it can get the support needed to keep operating the two strategic assets, it said. But the company will need to decide on the future of the processing plants in the coming days.
Glencore declined to comment on the specifics of the deal, including financial details. Tim Ayres, Australia's federal minister for industry and innovation, also declined to reveal specifics in a 17 September interview with ABC North West Queensland, citing commercial and government interests.
Glencore placed its Mount Isa smelter and Townsville refinery under strategic review in April. Queensland's government has been working with the company on a path forward for the sites since then.
Glencore's decision on its Queensland processing plants could affect other industries in the state. The company's Mount Isa copper smelter supplies sulphuric acid to Phosphate Hill — Australia's only MAP and DAP production plant owned by Australian chemicals and fertilizer producer Dyno Nobel, formerly Incitec Pivot — which is under strategic review. Dyno Nobel could close the plant as early as September 2026, depending on the outcome of the review.
Phosphate Hill was not included in the sale of Incitec Pivot Fertilizer (IPF) from Dyno Nobel to Australian agribusiness Ridley. IPF will have access to Phosphate Hill product through an offtake agreement.
The Australian government is not supporting Glencore exclusively. It partnered with South Australian and Tasmanian state authorities to create a A$135mn ($90mn) support package for global producer Nyrstar to keep its 280,000 t/yr Hobart zinc smelter and 160,000 t/yr Port Pirie lead smelter open. The government's support will allow both smelters to develop critical mineral processing capabilities.
Glencore is also negotiating other copper-related deals. The company signed a non-binding $200mn-250mn offtake deal with Australian developer Orion Minerals to support the development of its Prieska project in South Africa, which is set to eventually produce 30,000 t/yr of copper and 65,000 t/yr of zinc concentrate.
Glencore will buy 100pc of Orion's Prieska zinc and copper concentrates for 10 years at market prices, Orion told investors on 17 September.
