Labor’s plan to trade-off our critical minerals against Trump’s tariffs would not be viable for US mining companies due to a lack of affordable power, a third-world road and rail network and the high cost of living in western Queensland.
“Donald Trump would need to supply an extension cord and a shovel before mining critical minerals here,” Member for Traeger Robbie Katter said.
Mt Isa copper mines closed down recently and the smelter’s future is also grim, threatening 17,000 direct and indirect jobs in the region and at Townsville copper refinery.
Copper mining and smelting at Mt Isa is largely controlled by Glencore a foreign-owned company which returned $2.2 billion to its shareholders this year, therefore asking taxpayers to stump up funds for necessary upgrades was a “bit rich” according to Mr Katter, a stalwart for the Mt Isa region.
“Here we are, with the copper smelter; if it falls, it’s a house of cards – the fertiliser plant, the rail, the next generation of miners who want to help Australia benefit from the $700 billion in resources which are in the ground in the North West – that all goes if the smelter goes,” Mr Katter said.
There is still no word from the federal or state governments how either plans to save Queensland’s hard rock mining industry, while Glencore plans to shut down the smelter.
Nor is there any definite word from Powerlink about extending the Copperstring powerline project from Hughenden to Mt Isa after massive billion dollar blowouts caused in part by Labor’s red, green and black tape.
Powerlink has since advised it would be better to build the transmission line from Townsville to Hughenden before extending it to Mount Isa — a backflip on the original plan to first build west from Hughenden.
“We’ve put up with a lot of signs of gross incompetence, this in the nail in the coffin, the government can no longer ignore this issue,” Mr Katter said.
There’s plenty of construction companies out there that could build this faster and progress,” he said.
“We’re almost two years in and all we have are half-built dongas and an interpretive centre in Townsville — how did that become the priority?”
The frustrated state MP said the vast critical mineral deposits in the Mt Isa and Cloncurry region needed a reliable and affordable power supply to open up copper, lead, zinc and gold deposits.
There are around eight smaller copper mines operating in the region which are entirely dependent on the smelter for processing.
“I get so frustrated when I talk about nation building, and wealth generating projects and people think it’s all about us in Mount Isa or other remote parts of Queensland. This is as much about the future of Australia’s sovereign capabilities in manufacturing and value adding, as it is the future of Mount Isa,” Mr Katter said.
“Australia simply cannot let strategic infrastructure such as the Mount Isa Smelter fail and be shut down by a multinational trading company who do not share our appetite for preserving critical industry.
“The smelter’s future operation is vital for Australia to play its destined role in the global copper boom that’s playing out before our eyes. It should not be determined by a spreadsheet of a multination commodity trader.
“We need more copper to be produced in the next 25 years than has ever been produced by mankind – and we’re going to let this close? Not on my watch!”
Glencore has confirmed it was currently reviewing a “detailed offer … of support for the copper smelter and refinery” from the Queensland government.
A spokesman said the company was “grateful for this offer of assistance” but noted a “quite significant” economic gap remained.
“Bridging it will require support from both Queensland and federal government,” they said.
“At present we don’t have anything on the table from the Federal Government but we look forward to engaging further with Minister (Tim) Ayres in the coming weeks.”
