Investments to build future metals production

Federal Industry minister Tim Ayres has announced up to $600 million will be invested over three years to sustain Glencore’s Mount Isa Copper Smelter and Townsville Refinery in Queensland, while work on an $80 million investment program to upgrade the Nyrstar’s Port Pirie multi-metals facility in South Australia has also begun.

Funded jointly by the Australian and Queensland Governments, the Mount Isa and Townsville package will see three tranches of $200 million delivered over the next three years – dependent on facility owner Glencore completing a transformation study focusing on driving sustainable and long-term industrial capability in Mount Isa.

“It will evaluate the end-to-end copper value chain in the region and seek to understand the long-term opportunity for the facilities, industry and Mount Isa workers beyond the support period, positioning the region for a more diverse and resilient future,” a joint government announcement says.

Governments have identified maintaining Australia’s domestic metals processing capability as “fundamental” to Australian economic resilience, and the Mount Isa Copper Smelter provides half of Australia’s total copper smelting capacity.

Ayres says the government will hold Glencore to account in ensuring it upheld its commitments under the arrangement.

“If Australia didn’t already have established facilities like the Mount Isa Copper Smelter, we’d be looking to build them to protect Australia’s industrial capability, and strengthen the capability needed for future,” he says.

“The Albanese Government will always stand up for Australian industry and workers. This funding will protect Mount Isa’s workforce and regional Queensland industries, while reinforcing the need to deliver good skilled jobs to deliver a Future Made in Australia.”

Queensland minister for Regional and Rural Development Dale Last says the deal supported jobs across North and North-West Queensland.

“The Queensland Government will provide funding for capital infrastructure works that support smelter operations at Mount Isa,” he says.

“We’ve worked tirelessly to deliver a result that is financially responsible, delivers value for taxpayers, holds Glencore to account and most importantly, gives certainty to families and supports Mount Isa’s future.”

Investment in Critical Minerals

In South Australia, zinc and lead manufacturer Nyrstar has commenced an $80 million upgrade program at its Port Pirie smelter, supported by the Australian and South Australian Governments.

The 50-day works will involve 350 subcontractors from 90 local suppliers, completing a reline of the Top Submerged Lance furnace, a rebuild of the Copper Dross Furnace, and the construction of an improved enclosure for the Blast Furnace, alongside improvements to the acid plant, fume handling systems and wastewater treatment.

The upgrades are designed to restore full smelting capacity for lead and associated metals such as copper, silver and gold.

Crucially, they will also expand the site’s capability to process critical minerals such as antimony and bismuth — materials vital for electronics and energy storage.

Nyrstar is also developing an Antimony Pilot Plant, with first metal expected in 2026, and exploring the potential of producing bismuth and tellurium at the facility into the future.

Antimony is an alloy hardener for other metals in ammunition and batteries and is critical to the manufacture of semi-conductors found in electronics and defence applications. It is also used in flame retardant materials.

Nyrstar Australia chief executive Matt Howell says the Port Pirie and Hobart facilities are a key part of Australia’s metals processing infrastructure.

“This $80 million investment is about improving the efficiency and competitiveness of our Port Pirie operations while underpinning our critical metals production that Australia, the US and other global partners need,” he says.

“Backed by the support of the South Australian and Federal Governments, we are creating new opportunities at Port Pirie for economic growth, supply chain resilience and sovereign capability in the production of strategic metals vital for technology, energy transition and defence.’

Ayres says the program start showed that the $135 million investment deal Nyrstar had signed with the Federal, South Australian and Tasmanian governments earlier this year was working as intended.

“This new investment makes the smelter more capable, more efficient and is part of the effort by Nyrstar, the governments, workers and maintenance teams to secure the plant’s future,” he says.