Australia announces $395 Million to Support Glencore Copper Smelter

Australia announced on Wednesday that it would provide A$600,000,000 ($395,000,000) in financial support to Glencore's Mount Isa Copper Smelter in Queensland and Townsville Refinery over the next three-year period.

The bailout will be split 50-50 by the federal and Queensland governments. This comes amid increasing concerns about supply chain vulnerability tied to China, which have increased pressure on Western countries to secure access critical minerals for energy transition and defense.

Glencore is to receive up to $200m in payments over the next 3 years. This payment will be contingent upon the completion of the transformation study and other review points. Federal Industry Minister Tim Ayres announced this in a press release.

The Mount Isa study will be focusing on "sustainable and long-term Industrial Capability" and will save 600 jobs directly.

Copper is essential for the construction of solar panels, windmills, and energy storage systems. The statement stated that this investment will strengthen our supply chains, and support Australia's transition towards net zero.

(source: Reuters)