Taxpayer bailout expected for major smelter: report
Swiss mining giant Glencore is reportedly ready to take a taxpayer bailout to rescue a troubled smelter and potentially save hundreds of jobs.
Federal Industry Minister Tim Ayres and Queensland Resources Minister Dale Last are expected to make the announcement in Mount Isa in north Queensland on Wednesday, the Australian Financial Review reported.
In July, Glencore closed its underground copper mine at Mt Isa, resulting in the direct loss of almost 500 jobs.
It also warned that it was preparing to place the nearby smelter and Townsville copper refinery on maintenance and repair until market conditions improved.
Glencore had said its smelter assets were losing money and projected a loss of $2.2 billion over the next seven years.
There have been calls for the federal and Queensland governments to offer support to save the smelter.
The federal opposition said any effort to keep copper operations open would be good news for the local community.
“This is welcome news, but it should never have taken this long,” resources spokeswoman Susan McDonald said in a statement.
“For months, smelter and refinery workers and support industries in Mount Isa and Townsville have lived under a cloud of uncertainty as the federal government drags its feet.”
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