Glencore Mount Isa Closure Marks Major Shift in Australian Copper Production

Mount Isa Copper Mines to Close as Glencore Exits Australian Upstream Production

Glencore (LON: GLEN) will shutter its final two copper mines in Mount Isa, Queensland, by next week. This closure ends more than 60 years of copper production in the region and signals Glencore’s full withdrawal from upstream copper operations in Australia. Initially expected to cut over 1,200 jobs, revised estimates now put the total at approximately 500, thanks to internal redeployment efforts.

The shutdown includes not only the mines but also key infrastructure such as smelters and concentrators. Sam Strohmayr, COO of Glencore’s Australian zinc and copper assets, emphasized ongoing efforts to reassign affected workers. Still, the looming job losses have sparked serious concern in the local mining community, where Glencore has been a cornerstone employer for decades.

Glencore Smelter and Refinery Face Uncertain Future

The broader copper processing infrastructure is also in jeopardy. An internal memo by interim COO Troy Wilson reveals Glencore may shut down its Mount Isa copper smelter and the Townsville refinery. The company is lobbying state and federal governments for financial support and has even floated the idea of equity partnerships. Glencore processes third-party ore, including material from BHP, making the stakes high across the industry.

Suresh Vadnagra, a senior executive at Glencore, described the Queensland government’s support proposal as insufficient. “Time is running out,” he warned, outlining three possible paths forward: direct subsidies, a joint venture, or shutdown. Meanwhile, Queensland Minister Dale Last defended the state’s measured approach, refusing to issue what he called a “blank cheque” to a multinational that recently paid $2.2 billion in dividends.

Glencore argues that subsidies in China have tilted the playing field, with Australian smelters struggling under market pressure. The company plans to decide on the smelter’s fate by September. If no solution emerges, Western smelters could face further consolidation, especially given the global downturn in treatment and refining charges (TC/RCs).

SuperMetalPrice Commentary:

The closure of Glencore’s Mount Isa copper mines is not just a corporate retrenchment—it’s a harbinger for Western copper supply chains. While copper demand is poised to surge due to electrification and energy transition goals, upstream producers in regions like Australia face severe headwinds. Rising costs, government hesitancy, and aggressive overseas subsidies are creating a supply risk for downstream processors and OEMs. If Glencore’s smelter and refinery also shut down, Australia’s copper sector could become overly reliant on imports, further weakening its strategic autonomy in critical minerals.