Glencore Plc is preparing to close its last two copper mines in the Australian state of Queensland next week.
With the closure of the Mount Isa mines, which have operated for more than 60 years, the company will end its copper mining operations in Australia. Glencore is also considering closing a smelter complex in Queensland.
The company announced plans to close the Mount Isa mines in October 2023 after a review showed that their continued operation had become uneconomic due to declining grades.
Glencore is trying to secure financial support from the state and federal governments to keep the smelter, which could process ore from third-party suppliers, and the copper products facility in Townsville, Queensland, running.
Despite the optimistic outlook for the copper market, many copper smelters in developed countries are on the verge of closure due to increased competition from Chinese producers, Bloomberg notes.
Troy Wilson, chief operating officer of Glencore’s Australian metals business, said last month that “a level playing field with China no longer exists” because smelters in the PRC are heavily subsidised.
Glencore will make a decision on the future fate of the Queensland steelmaker by the end of September.