General News
9 April, 2025
Q&A with Dale Last: Minister discusses region's hot topics
The Minister for Natural Resources and Mines sat down with North West Weekly at 1 William Street.
As Mount Isa deals with the prospect of hundreds of job losses from the closure of the underground copper mines, Minister for Natural Resources and Mines DALE LAST spoke with North West Weekly editor MATT NICHOLLS about some of the big issues facing the city and the North West ...
MN: Minister, the North West, particularly Mount Isa, is at a critical juncture in its history. We’ve got Glencore announcing the closure of its underground copper operations, we’ve got question marks over the future of the copper smelter, as well as uncertainty over the CopperString project. Where do you see things at the moment?
DL: There are a number of parts to this that are all inextricably linked. You look at the copper mine in Mount Isa, you look at the operation of Incitec Pivot (Phosphate Hill), you then look at the copper refinery in Townsville ... they are all linked. They are all dependent on that smelter and that is a critical element in this equation going forward.
If we’re to find a solution for Mount Isa and the broader North West Minerals Province, then that smelter is a key part of that.
As a consequence, we’re doing a lot of work at the moment with Glencore to ensure the smelter remains operational. That will give them confidence in the broader industry to open up and develop other copper mines in that area.
Glencore is on the record saying it has gone to the state and federal governments looking for support. I know you’ve had conversations with (Glencore CEO) Gary Nagle and, obviously, some of those things will be in confidence, but what does Glencore ultimately want?
They’ve indicated that they’d like to see (the smelter) continue operation. They’re talking about opening up Black Star (open cut mine), which is on their current tenure. We’ve already given an indication that, if it stacks up financially and the feasibility studies are favourable, then we will do everything we can to fast-track the approval process for Black Star.
If the government was to support Glencore, what would you be asking in return?
What we would be asking for is that the smelter continues operating for the next 10 years to give the certainty that Mount Isa needs, but also for those other mining companies and investors who may be looking at going into that area.
One of the concerns being relayed is that investor confidence is low in the North West. Is there a case to be made that Glencore shouldn’t own the smelter? Maybe the state takes over or it’s owned in a joint partnership?
The state is not in the business of owning and operating smelters.
It would certainly be our preference that Glencore would maintain and operate that smelter.
Whether there are other investors or arrangements that could be put in place for other operators to work with Glencore, that is up to them. Our discussions with Glencore are reaching a critical juncture, given the timeframes.
This mine is closing in a couple of months’ time, and we need to be doing everything we can to resolve this and give that community certainty.
That uncertainty is not helpful for Mount Isa, not helpful for investors, and certainly not helpful for the workforce.
Will there be government support for Mount Isa?
Glencore has approached the federal government and we’re working with the feds on a package to support the smelter and jobs in Mount Isa.
So not only are we in discussions with Glencore about it, we’re talking to the federal government.
They’re in election mode, but it’s the ideal time to be talking to them. We’re looking for a commitment from the federal government to help support this community.
There’s been a lot of talk about the potential of the North West Minerals Province.
If we are to take that province forward, if we are to see the development and realise the potential of the resources that are out there, then you need to have things like the smelter, and of course the two big ticket items – power and water.
You need to be able to put the tick in those boxes.
Then, of course, transport as well. We’ve heard a lot about the rail and we all know what the Flinders Highway is like.
So that critical infrastructure, energy, water and roads, are crucial if we’re going to see those projects proceed.
Robbie Katter has been pushing a use-it-or-lose-it policy for Glencore in regards to the Mount Isa mining lease. Some say that Glencore could potentially be in breach of its lease conditions if some of the operations stop. Is that something you want to explore?
I’m not in the business of coming in and shutting down mines.
I think that sends the wrong message to investors and mining companies. We would much rather find a resolution in collaboration with Glencore.
They’ve certainly indicated to date that they want to work with government to keep it going.
They’re mining in that community; they’re still out exploring, they’re still out drilling, which gives me some confidence that they are committed to maintaining a presence in the North West.
Glencore’s getting a lot of the headlines, but Incitec Pivot (now called Dyno Nobel) also has major concerns regarding Phosphate Hill and sulphuric acid. I know that you’ve had meetings with them, so where do they sit and what help do they need?
It’s linked to the smelter at Mount Isa, and we know that they’re all dependent on each other, hence the reason why we need to keep that smelter going because that will allow Incitec Pivot to keep going. (Phosphate Hill) is for sale, I don’t think that’s a secret.
They’re looking to divest that asset. There is some interest, so we’re hopeful that will proceed, and we will work with Incitec Pivot in any way we can to help them keep that operation going, because without that, then we have a problem with sulphuric acid supply.
Does Incitec Pivot also need government support?
They will need support in terms of approvals and the regulatory framework, and that’s certainly a role that we play.
We know that they had an issue with the supply of gas from the Northern Territory. I spoke to my counterpart in the NT government and reiterated just how important that gas is, because that was locked in on a contract basis.
We want to see that plant remain operational because it’s an important part of this overall piece in terms of the smelter and then the refinery (in Townsville).
Greg Campbell, the mayor of Cloncurry is concerned about the pressure on junior miners. He’s had four junior miners collapse in 12 months. The junior miners say that a lot of their capital is eaten up in the environmental bonds. What could be done to help them?
We have established the Resources Cabinet Committee, a very powerful committee. I chair that, the Deputy Premier, Treasurer and Environment Minister sit on that committee. These are the types of issues that we are looking at.
How can we incentivise juniors and start-ups? We know that they are challenged in those early stages of development.
We want to support them. If we’re going to open up that North West area, then we need to be looking at all those opportunities going forward.
Environmental bonds is on the agenda to have a look at.
Is there a better way of managing that process? That is the bread and butter of this resources cabinet committee. Those are the sorts of things that we will be looking at.
Minister, you’ve been in the role for six months but you haven’t made a trip to the North West since being sworn in. Someone quipped to me that you’d been to a conference in Canada before making a trip to Mount Isa. Why is that and what was the purpose of the trip to Canada?
So a couple of parts to that. I lived in the North West – I was at Julia Creek for four years, and I was in Mount Isa last year when they had their conference (MPX).
It’s certainly on my agenda to visit Mount Isa, but more importantly, that overseas trade mission was so critical to developing that North West Minerals Province. We met with a number of mining companies and investment firms both in the US and Canada.
There’s a lot of interest in that critical mineral space.
The Trump administration is interested in critical minerals and already that’s bearing fruit.
So that trip has paid for itself 10 times over with a couple of joint ventures that look like being signed in the next few weeks.
We want to take that interest and now convert that at ground level in Mount Isa to developing some of those critical minerals.
On CopperString, you met with the North West mayors, who are very uneasy about the future of the project. Where do you think things are at?
We’re still committed to the delivery of CopperString.
Energy is one of the critical components if we’re going to develop the North West. We need affordable, reliable energy.
We’re committed to that particular project and we’re moving forward with it. If anything, I want to see it fast-tracked.
Last one, you mentioned the rail before. Is there a place for the Queensland government to look at subsidising or improving the conditions to get more traffic on the Mount Isa rail line?
Absolutely. The Transport Minister, Brent Mickelberg, is well aware of the issues around freight charges.
When you can freight ore and produce on the road cheaper than rail we have a fundamental problem.
We need to address that; we need to be putting more on rail, it needs to be better utilised and there needs to be a significant injection of funds into upgrading and maintaining that railway line and the corridor. It is a crucial piece of infrastructure.