Glencore Commits $60M to Exploration in North West Minerals Province Amid Workforce Transition
Glencore, a prominent figure in the global mining sector, is taking significant steps in the North West Minerals province, dedicating $60 million this financial year in a determined search for new mining deposits akin to the prolific Mount Isa mine. This investment comes at a crucial time as the company faces the challenge of phasing out 1200 positions in its local copper operations by mid-2025.
During a recent community consultation meeting, Glencore’s zinc and copper chief operating officer, Sam Strohmayr, outlined a series of measures aimed at mitigating the impact of these job reductions. Central to these plans is the intention to reopen the former Black Star open pit in 2027. This initiative, along with an examination of the low-grade ore in the tailings, could potentially support up to 400 jobs. Furthermore, an expansion of operations at the nearby George Fisher zinc, silver, and lead mine is also being considered.
Despite the global surge in interest for renewable technologies, which could increase the demand for zinc and copper, Glencore acknowledges the challenge in preserving all 1200 jobs. The company is also facing the reality that speeding up the reopening of the Black Star mine for a seamless transition from the copper mines' closures is unlikely.
In response to the impending job reductions, Glencore has been proactive in engaging with its workforce, offering them the option to continue their employment or accept redundancy packages. To date, about two-thirds of the employees have shown interest in continuing their roles, while approximately a quarter have opted for redundancy. Strohmayr emphasized the diverse range of emotions and responses among the workforce during this transition period. He also noted the necessity of maintaining a robust workforce at the Mount Isa copper operations for the next 18 months, striking a delicate balance between workforce management and ongoing operational requirements.
In its quest for new deposits, Glencore is exploring an expansive area, spanning almost 10,000 square kilometers across 60 tenements. The company's exploration efforts include drilling at NQ Phosphate and Austral Joint Ventures, reflecting an optimistic yet systematic approach to discovering new mineral resources.
The Queensland Government, through Resource Minister Scott Stewart, has expressed support for Glencore's handling of the situation, acknowledging the company's commitment to its workers and the local community. Additionally, the government has pledged $50 million to support workers and the community affected by the closures. This funding includes up to $30 million dedicated to accelerating the development of mining projects in the region within the next five years, signaling a bright future for Mount Isa and its surrounding areas.
