Australia’s federal and Queensland governments will jointly invest up to A$600-million to keep Glencore’s Mount Isa copper smelter and Townsville refinery running, securing hundreds of regional jobs and safeguarding copper-processing capacity.

The funding, announced on Wednesday, will be delivered over three years in three installments of up to A$200-million each. It aims to relieve immediate financial pressures on the facilities while a transformation study explores long-term options to make Mount Isa’s industrial base more sustainable.

The Mount Isa complex, which accounts for about half of Australia’s copper smelting capacity, employs about 600 workers directly and supports another 500 at Glencore’s nearby Phosphate Hill operation. 

"This funding will protect Mount Isa’s workforce and regional Queensland industries, while reinforcing the need to deliver good skilled jobs to deliver a Future Made in Australia," said Industry and Innovation Minister Tim Ayres.

He noted that copper was essential for renewable-energy systems such as solar panels, wind turbines and batteries, and that maintaining domestic refining capability would strengthen national supply chains during the global energy transition.

“If Australia did not already have established facilities like the Mount Isa copper smelter, we’d be looking to build them to protect Australia’s industrial capability,” Ayres said. “The Albanese Labor government will hold Glencore to account ensuring they uphold their commitments in this arrangement.”

Queensland Natural Resources and Mines Minister Dale Last said the deal showed the state's “commitment to ensuring Queensland is the world leader in resources and minerals processing".

“The Mount Isa copper smelter and Townsville copper refinery are cornerstones of our economy that support not only 600 direct jobs, but thousands of jobs across the regional supply chain,” Last said. “We have worked tirelessly to deliver a result that is financially responsible, delivers value for taxpayers, holds Glencore to account and most importantly, gives certainty to families and supports Mount Isa’s future.”

Under the agreement, Queensland will fund capital infrastructure works that support the smelter’s continued operation, while the federal contribution will back the transition study and broader industrial planning.

Both governments said they had worked “in lockstep” with Glencore to secure the deal, which follows months of uncertainty after the miner warned that it was reviewing the long-term viability of the 60-year-old smelter.

The transformation study will assess the region’s end-to-end copper value chain and explore diversification opportunities for Mount Isa beyond the three-year funding window.

“This deal is about standing with [workers], because we back Mount Isa, we back our metals processing sector and we back the hard-working Queenslanders who keep our economy strong,” Last said.