As debate continues around the cost and timely delivery of CopperString, Glencore CEO Gary Nagle has warned that high power prices remain a major threat to the viability of Mount Isa Mines' copper smelter and refinery.
Speaking to The Australian (20 February 2025), Mr. Nagle reinforced the pressing need for competitive energy pricing to ensure the future of the smelter.
“The smelter is challenged given high power costs. We’ve seen power costs in Australia more than double those in some other parts of the world,” Mr. Nagle said.
“The only way to survive is to have a competitive cost line, and a big input into that is the cost of power. Unfortunately, the cost of power in Australia, versus where other smelters are in the world, is significantly higher.”
Townsville Enterprise CEO Claudia Brumme-Smith says the economic opportunity of cheaper power for the Northwest cannot be overstated.
“For decades, high power prices have been the biggest barrier to growth for mining and manufacturing in North and Northwest Queensland. CopperString is a major part of the solution—it will connect Mount Isa to the National Electricity Market (NEM) and unlock the energy security this region has been waiting for. We just need to get this project moving as quickly as possible,” Ms. Brumme-Smith said.
“The closure of Mount Isa’s copper smelter, proposed for later this year, would have a direct impact on hundreds of jobs, with potential flow-on effects for 10,000 jobs in Townsville and across North Queensland. We cannot afford to lose these jobs or let this economic opportunity slip away—the solution has been clear for more than a decade.”
“This isn’t just about the big players like Glencore. Every day, we hear from junior miners, mining contractors, and manufacturers who are all hamstrung due to high power costs. If we fix energy pricing, connect Mount Isa to the NEM, and unlock 33GW of renewable energy, we will future-proof and accelerate North Queensland’s economy like no other project in history.”
“We have always said that without transmission, there is no transition. But CopperString is proving to be even more than that—it’s the backbone of a $24Bn pipeline of projects that are critical to the
future of North Queensland. Any risk of delays to this vital project has a flow on impact on existing and new industries, not to mention the prosperity of entire communities across the North.”
Ms. Brumme-Smith acknowledged the Crisafulli Government’s continued commitment to CopperString but reinforced the need to maintain the project’s original scope and timeline.
“We congratulate the Premier and Treasurer on their steadfast commitment to CopperString. They understand regional economics and the significance of this project—but we need to move faster. Our message is clear: there can be no changes to the scope of CopperString. It must be delivered in full, as promised, and fast-tracked wherever possible—no more delays.”
“This is a nation-building project. It will connect Mount Isa to the National Electricity Grid, unlock 33GW of renewable energy, make hundreds of millions of dollars’ worth of critical minerals mining viable, and safeguard regional communities from economic hardship. The time for debate is over—it’s time for delivery.”
