The federal government’s announcement of a A$600 million rescue package for Glencore’s copper smelting and refining operations in Mount Isa and Townsville marks a definitive shift in Australia’s industry policy.
The announcement follows the $2.4 billion rescue of the Whyalla steelworks, and a smaller assistance package for metals smelter Nyrstar.
At the time it was announced, the Whyalla rescue could be seen as a one-off special case. The steelworks’ owner, Sanjeev Gupta, had run into financial difficulties associated with the collapse of its major financier, Greensill Capital. The rescue plan included support for a transition from unsustainable blast furnace technology to “green steel”, though this remains problematic.
