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Glencore Plc, the Swiss mining and commodity trading giant led by South African executive Gary Nagle, will receive A$600 million ($395 million) in Australian government support over three years for its Mount Isa copper smelter and Townsville refinery.
The funding, split equally between the federal and Queensland state governments, comes amid rising concern over secure access to minerals essential for energy transition and national defense. Earlier this year, the company warned it might have to close the Mount Isa smelter, putting around 600 jobs at risk.
Under the Australian plan, Glencore will receive up to three payments of $200 million, contingent on completing a transformation study and meeting other review benchmarks, Federal Industry Minister Tim Ayres said.
Strategic role in national supply
Glencore, which reported a half-year profit of $5.43 billion, emphasized that the Mount Isa and Townsville operations are vital to Queensland’s copper supply and Australia’s broader critical minerals strategy. “Competition in the global copper smelting market is fierce, and it is not a level playing field,” said Troy Wilson, interim COO of Glencore Metals Australia.
The company has outlined A$2.5 billion ($1.6 billion) in proposed or planned investment over six years in the Mount Isa region, primarily focused on zinc and lead projects, including expansions at the George Fisher mine and the Black Star Open Cut project.
Glencore strengthens global footprint
Founded in the 1970s, Glencore has expanded into one of the world’s largest resource groups, it now employs about 150,000 people across 35 countries. It is a key supplier of nickel, cobalt, and copper—key materials for electric vehicles and renewable energy systems. Under Nagle, the company has maintained its global footprint while adjusting production to market conditions.
Last month, Glencore entered talks with South African authorities over the potential rescue of local smelters, citing rising power costs and operational pressures. The miner, alongside Vitol, has bid for Chevron’s $1 billion Singapore refinery stake as the U.S. oil giant scales back Asian assets. In August, Glencore announced plans to invest $13.5 billion in Argentine copper projects.
