Glencore seeks Australian government bailout for local copper assets

(Reuters) - Anglo-Swiss commodities giant Glencore said that it has approached both Queensland's and the Federal Government of Australia about the future of its Mount Isa copper smelter and Townville copper refinery assets.

In October 2023, Glencore first announced the closure of its Mount Isa copper mines in the second half of 2025, citing studies and reviews stating it was not possible to further extend the life of the underground mines.

"Through the work undertaken we now expect this (impact on workforce) to be about 500 people and we're actively working to redeploy as many people as possible over the coming months," Sam Strohmayr, chief operating officer for the Swiss miner's Australian zinc and copper assets, said on Wednesday in an address to Mount Isa's local communities, adding that the original estimate was around 1,200 roles.

"We are assessing the future of our copper processing assets against a backdrop of the largest drops in treatment and refining charges in 25 years, with smelters in countries like China and Indonesia heavily subsidised by their governments," Strohmayr added.

With this announcement, Glencore becomes the second international commodities firm to reconsider the status of its Australian assets, following Swiss trading house Trafigura's decision to place its struggling Nyrstar zinc smelter in Tasmania under strategic review.

Speaking about the decision in a late March onstage interview at the FT Commodities Global Summit, Trafigura's CEO, Richard Holtum, said mineral processing facilities such as smelters should be considered "a national security issue", adding that unless governments provided more support, the West would never reduce its dependence on China for supplies of critical minerals.

(Reporting by Shivangi Lahiri in Bengaluru, additional reporting by Aaditya Govind Rao; Editing by Alan Barona)