Glencore (GLEN.L) announced earlier this year that it might have to close its Mount Isa copper smelter, a move that would affect around 600 jobs. Copper smelters worldwide are facing difficulties due to a shortage of concentrate and overcapacity in China. Australia recently unveiled a A$600 million ($395 million) support package over three years for Glencore’s Mount Isa copper smelter and the Townsville refinery.

Federal Industry Minister Tim Ayres stated that Glencore will receive up to $200 million in each of the next three years, depending on the completion of a transformation study and other review requirements. The bailout, jointly funded by the federal and Queensland state governments, highlights growing pressure to secure supplies of minerals critical for energy transition and defence. Although copper is not officially listed as a critical mineral in Australia, its demand is expected to rise significantly because of its high conductivity and importance in green energy technologies.