Glencore receives $600m bailout to keep Mount Isa smelter open

ABC NEWS (Australia)

Swiss-owned mining giant Glencore has secured a 600-million-dollar taxpayer funded bailout to keep operating its copper smelter in mount isa and its refinery in Townsville. The bailout will save around 600 jobs in the small city.

Transcript

00:00We have just heard from both state and federal governments alongside mining giant Glencore

00:07that Australian taxpayers will be funding an up to $600 million financial bridging support

00:14package to keep the Mount Isa Copper operations open.

00:18Earlier this year, Glencore announced it would close the smelter if they didn't receive

00:22any financial support between governments, which led to the five-month-long negotiations

00:27between all parties.

00:29In terms of what we know about the agreement, as I said, it's an up to $600 million package.

00:35$200 million will be provided each year across the first two years and the third payment in

00:41the third year will be contingent on all parties being compliant within the agreement.

00:47A joint committee will meet monthly from representatives from Glencore and both governments to ensure

00:52operations remain on track and there will be two annual review points.

00:57The Queensland Minister for Mines down last says this shows both levels of government

01:01are committed to ensuring the operations here continue.

01:06It does provide security for about 600 direct jobs.

01:10We have heard from the Mount Isa mayor that she's ecstatic about this announcement and that

01:15it does ensure that copper operations continue in the town and in the northwest.

01:20It's such an important industry for the region.

01:22It's such an important industry for the region.

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