Mining behemoth Glencore has spoken out about the rising energy costs in Australia, which it claims are at least double those in countries like China and the US.
Gary Nagle, who is the CEO of the Switzerland-based company, didn’t pull any punches during a brief visit to Australia last week.
‘Energy costs for Glencore’s metals business in Queensland are about double or more than those in India, China, Canada and the US,’ he told the Herald Sun.
‘As a result, Australia’s competitiveness is being impacted.’
He said the high prices made Australia a less attractive place for international businesses to invest.
Nagle paid visits to Queensland premier David Crisafulli and the Minns government in NSW during his visit.
He said he welcomed the new LNP government in Queensland but added that ‘high royalties and the cost of power continue to be big issues for our sector’.
He also complained about inconsistent project approval rules – for example, the discrepancy between the federal and NSW government’s emissions targets.
Mining behemoth Glencore has spoken out about the rising energy costs in Australia, which it claims are at least double those in countries like China and the US (pictured, Liddell Power Station in NSW)
The federal target is to slash emissions to 43 per cent below 2005 levels by 2030, while the NSW target is a 50 per cent reduction.
These rules were hampering Glencore’s application for the Hunter Valley Operations coal mine, an approval process that began in 2020.
‘We would like to see a single set of rules to play by. Project approvals are a key issue for us in NSW, in particular the HVO continuation project.’
Glencore is the world’s fifth-largest resources company.
More than 17,000 Australians work for for the company across 22 mines – it’s the country’s biggest producer of coal, but it also mines zinc, copper, lead, cobalt and nickel.
Last year, the mining giant announced that its Mount Isa underground mine operation in Queensland ‘s north-west would shut down within two years, citing low ore quality and ageing infrastructure.
The closure of one of the world’s biggest copper mines won’t just impact on the mine’s 1,200 workers, it will also have a dramatic ripple effect on the 18,317 residents who call Mount Isa home.
Glencore’s announcement prompted an impromptu fly-in visit from the Queensland government which announced a $50 million support package.
It is estimated untouched minerals found in the northwest province are valued at $500 billion.
