Mount Isa, Australia — After more than 60 years of continuous operation, Glencore is preparing to close its final two copper mines in Mount Isa, Queensland, this week. The closures mark a significant shift in Australia’s mining landscape and raise concerns about the future of the region’s copper smelter.
Glencore cited declining ore grades as the primary reason behind the shutdown, noting that continued operations were no longer economically viable. The company first announced its intentions in October 2023, following a comprehensive review of its operations.
Smelter Future Hangs in the Balance
Attention now turns to the Mount Isa copper smelter, a key facility that processes over one million tonnes of copper concentrate annually—including material from BHP Group’s Olympic Dam mine in South Australia. With the mines closing, the smelter’s future is uncertain.
Glencore has been lobbying both the Queensland state government and the Australian federal government for financial support to keep the smelter running. If saved, it would operate by processing ore from third-party producers.
But the industry is under pressure. Western smelters are increasingly uncompetitive against heavily subsidised Chinese facilities. Troy Wilson, Chief Operating Officer of Glencore’s Australian metals division, remarked last month that there is “no longer a level playing field” with China due to the extensive government support Chinese smelters receive.
A final decision on the smelter’s fate is expected by the end of September 2025.
Zinc Portfolio Realignment
In a related move, Glencore is also restructuring its zinc operations. On Tuesday, the company announced the sale of its Lady Loretta zinc mine and associated landholdings to Austral Resources Australia. This signals a broader strategic shift as Glencore reassesses its assets in the region.
Looking Ahead
The closure of Mount Isa’s copper mines is not just the end of a chapter for Glencore but also a turning point for the local mining community and Australia’s upstream copper sector. As stakeholders await the company’s half-year financial results on August 6, many will be watching to see how Glencore navigates this changing landscape and what it means for the future of copper production in the country.
