Mount Isa Industries Collapse Could Be Imminent

How Will this Impact Our Region?

The Federal Government has taken serious steps to implement a gas reservation policy (RRP) on the east coast of Australia. However, the details of the plan will determine whether Mount Isa and North West Minerals Province survive or collapse.

Mayor Ramon Jayo commented, “I’m becoming increasingly concerned about what’s happening in Mount Isa, particularly with talk of the smelter shutting down and Glencore ceasing operations there,” he said. “While it’s undeniably tragic for the region in terms of employment and long-term viability, there’s also a broader issue that could directly impact our cane-growing district.”

“Phosphate Hill relies heavily on sulphuric acid from the Mount Isa smelter. It’s a byproduct of their operations and a critical ingredient in manufacturing phosphate-based fertilisers, which our local cane growers use extensively. If that acid supply is disrupted, it’s going to put serious pressure on fertiliser production.”

He continued, “Even now, they’re already facing rising gas costs to keep things running, and we’re starting to worry about what that means for phosphate prices and, in turn, fertiliser costs. Cane growers are already copping increased fuel prices, and if fertiliser costs go up too, that’s going to hurt.”

“It’s something we need to keep a very close eye on, because any further cost inflation will have a knock-on effect across our whole industry. Hopefully, the government can step in and help resolve some of the issues with Glencore, so we can keep something going — to support our farmers and ensure there’s reliable continuity in the production of phosphate fertilisers.”

Bob Katter, the Federal Member for Kennedy, also voiced his concerns on the issue: "The complete collapse of Mount Isa's industrial base was imminent last week. The dominoes were already falling. Mount Isa pulls 3,000 jobs directly out of Townsville and fuels billions in industrial exports. If it goes under, it's not just a local issue – it's a national one."

Katter compared the situation to Western Australia, where a long-standing gas reservation policy is helping power the construction of a giant fertiliser plant by saying: "Here, we've got a fertiliser plant in Mount Isa that alone can bring in a thousand million dollars in a good year. And we're hanging by a thread."

While the Federal Government’s move toward an east coast gas reservation policy is a step in the right direction, its effectiveness will hinge on swift and strategic implementation. Local leaders and industry voices warn that without decisive action to secure an affordable gas supply and stabilise operations at key industrial hubs like Mount Isa, the ripple effects will be felt far beyond the region, from fertiliser production to jobs, and exports across northern Queensland.

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