Canberra: The Australian government has announced a significant bailout package to ensure the continued operation of a Glencore-owned copper smelter and refinery in Queensland for the next three years.

According to Namibia Press Agency, Australia's Minister for Industry and Innovation, Tim Ayres, outlined that the federal and Queensland governments will jointly invest up to 600 million Australian dollars (393.7 million U.S. dollars) in Glencore's operations located in northern Queensland. The initiative is aimed at maintaining the copper smelter in Mount Isa and the refinery in Townsville, addressing the company's April request for government assistance to sustain these facilities.

The financial support will be distributed over three years, with the federal and state governments equally sharing the funding. This strategic intervention is expected to safeguard over 1,000 jobs in the Mount Isa area and bolster Australia's status as an important global supplier of copper. Ayres emphasized the critical role of copper in manufacturing solar panels, wind turbines, and energy storage systems, linking the investment to Australia's transition towards a net-zero future.

In April, Glencore highlighted the Mount Isa facility's strategic importance but cited prohibitive energy and maintenance costs as factors affecting its profitability. On Wednesday, Glencore Metals Australia's interim chief operating officer, Troy Wilson, acknowledged the government support as essential for providing a short-term lifeline to the copper smelter and refinery.