Glencore warns on copper future in Qld

PERTH (miningweekly.com) – Diversified major Glencore has warned that the future of its copper processing operations in Queensland could be under threat if electricity prices continued to rise.

COO of the company’s copper assets in Australia, Mike Westerman said that future investment in energy intensive operations in the state could also be under threat.

“We support the government’s measures to decrease current volatility in the energy market and provide greater certainty for large industrial users of energy in Australia. We recognise this type of temporary bridging policy might be required, given the critical nature of the issue,” said Westerman.

“Australia is blessed with abundant natural resources and some state governments’ decision to lock up strategic gas reserves makes no sense,” he added.

The Australian government recently put gas export controls in place to ensure sufficient domestic supply.

Under the new policy, if an exporter is not a net contributor to the domestic market, meaning, they draw more from the market than they put in, they will be required to outline how they will fill the shortfall of domestic gas as part of their overall production and exports.

The regulation, which will be effective from July 1, will only be applicable to the east coast of Australia.

Westerman noted that Glencore was of the belief that reliable, low cost baseload energy for households and industry should be the cornerstone of Australia’s national energy policy.

“This should also include high efficient low emission coal technologies which can deliver secure energy with less emissions.”