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Residents in the mining hub of Mount Isa are taking stock after Glencore announced it would close its Mount Isa copper mine in 2025.
Key points:
- Home owners are concerned about a decline in the housing market if a lot of residents leave Mount Isa
- Optimistic residents say there are other industries that will prop up the town in years to come
- The town's leaders are calling for calm
At least 1,200 employees will be impacted directly by the closure of one of the biggest copper operations in the country and many more are expected to feel the blow to an economy which has been sustained by the copper mine for 60 years.
Businesses that supply the mine and its contractors as well as shops, schools and services that cater to mining families say they are bracing themselves for a tough road ahead.
Home owners had been lighting up the phones at local real estate agent City & Country Realty, concerned about a decline in the property market should mass numbers of residents and businesses affected by the closure leave the town, owner John Tully said.
"People are definitely panicking but our message to our clients is one of calm until this decision is a little more planned out and we know more details … panic is not the right way to go," he said.
"I think it will knock us around for 12 months. But I think there are enough industry projects across the area that will sustain the community for a long time to come."
Travis Cowther, who runs industrial supply business The Boss, said he was looking to expand his presence in Mount Isa but would hold off due to the closure announcement.
He said his business serviced the mine and many contractors.
"We will probably see a dip in sales straight up and I think any plans businesses had for progress and expansion will come back a bit as we watch and wait to see what happens," Mr Cowther said.
"It is already hard to fill jobs out here and if people leave the community because of this, especially pre-emptively, it's going to put even more stress on businesses."
Employees share concerns
At a local town hall meeting hosted by the Australian Workers' Union on Wednesday night, employees accused Glencore of lacking transparency about the future of its projects.
"As soon as Glencore took over this mine, there has been a complete lack of information shared to the community on longevity planning. We need more transparency about the long-term plans for the mine so people can be better prepared," one employee said.
Another worker said the company was downplaying the significance of the closure.
"This is a much bigger closure than anything we have ever gone through before," he said.
"And while zinc-lead mining will continue, the harsh reality is that there won't be enough positions to transfer everyone over."
Minister for Resources Scott Stewart told attendees that the government is in contact with smaller miners in the region and working to accelerate projects that could open at the same time Glencore closes the copper mine.
"We want to support these smaller players that can step in and fill the void left behind by Glencore," he said.
Optimism for other industries
Mount Isa is the epicentre of the North West Minerals Province, home to dozens of mining projects driven by global demand for metals used in renewable projects.
Glencore has signalled it will invest more in its George Fisher zinc-lead-silver mine — the largest of its kind in Australia.
Optimistic locals said the region's diverse range of industries could prop up the town in years to come.
Others hoped another mining company would swoop in and purchase the Mount Isa copper operation.
"I'm thinking there will be a little bit of reduction to the town but I don't think it is going to be major — there is still the zinc and lead industries or someone might come and take it over," said long-time local Peter Burgess whose employer provides services to the mine.
Kate Fischer, who runs a plastering business with her husband and their three children, said the impact from some of the families moving away on businesses and services might initially be significant.
"But there are so many mines around here and so many other industries and infrastructure … we're not worried," she said.
Mine should be 'held accountable': Katter
Member for Traeger Robbie Katter said Glencore was not the right owner for the mine and encouraged other mining companies to take over the Mount Isa copper operations.
"Glencore needs to be held accountable for this decision," he said.
"The big question here is: is Glencore the best owner and operator of this mine? I don't think they are."
Member for Kennedy Bob Katter said a lack of infrastructure to produce copper products on Australian soil was a major barrier for the development of domestic industry.
"These people think they can use Australia as a milking machine," he said.
"Glencore is now walking away from this mine, they will produce nothing, yet they will be the toll keeper for the copper smelter so smaller mining companies trying to develop in the region have to pay them."
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