Glencore asks government for help after claiming that the copper smelter in Australia is unviable

Glencore said that its Mount Isa copper-smelter is unviable, and it's waiting for the response to its requests from the state and federal governments in order to keep this facility open despite tough global conditions.

The UK-listed company has been alarming local media regarding its Mount Isa Smelting Business in Queensland State as its mining operations will close next month.

The company will have to purchase copper concentrates to process once global processing costs are at historic lows due to excess global smelting capacities.

Glencore released a statement that said, "A combination unprecedented market conditions for smelting, high energy, gas, and labour costs, and a lack of copper concentrates, make the Mount Isa Copper Smelter inoperable."

Glencore has said that it has asked both the federal government and Queensland's state government for assistance to keep its copper smelter operating.

On Friday, several lawmakers, including Australia's Industry and Science Minister, Tim Ayres and Queensland Resources Minister, Dale Last, visited the plant.

In a joint announcement, the state and federal government have worked closely with Glencore in order to find a way forward for this smelter. It is an important asset for both the regional and state economies.

Ayres stated in the statement that "any closure of the Mount Isa Copper Smelter would have an adverse impact on Australia's sovereignty capability and other downstream facilities that depend on the smelter", without providing any details as to what funding options might exist for Glencore.

Glencore stated that it has put forward ideas to "bridge the current economic gap" and allow the refinery and smelter to continue operations.

Troy Wilson, Glencore's chief operating officer of Australian metals, said in a press release that the company wanted to keep operating its smelter. "We look forward to receiving feedback from both the federal and Queensland government on possible ways forward." (Reporting by Melanie Burton; Editing by Tom Hogue)

(source: Reuters)