Mount Isa Mines Limited Agreement (Continuing Mining Activities) Amendment Bill 2024
Plain English Summary
Overview
This bill lapsed and did not become law. It was a private member's bill introduced by Mr R Katter MP in response to Glencore's announcement that it would close the Mount Isa copper mine, cutting around 1,200 jobs. The bill sought to amend the 1985 agreement between Queensland and Mount Isa Mines Limited to prevent the company from ceasing copper mining without government approval.
Who it affects
Mount Isa residents and mine workers stood to benefit most, with protections against sudden job losses. The mining company would have faced new restrictions on its ability to wind down operations.
Key changes
- Would have required the mining company to continue all copper mining activities at existing levels unless the Minister approved a change
- The Minister could only approve an operational change if satisfied it would not adversely affect the Mount Isa community or Queensland's economy
- If the company wanted to stop or reduce mining, the government would have been required to call for public tenders to find a replacement operator
- The company would have had to relinquish its mining rights to any replacement operator identified through the tender process
Bill Journey
▸Committee1 May 2024View Hansard
Referred to Clean Economy Jobs, Resources and Transport Committee
The Clean Economy Jobs, Resources and Transport Committee examined this private member's bill introduced by the Member for Traeger, which sought to prevent Glencore from closing its Mount Isa underground copper operations without ministerial approval. The committee visited Mount Isa and Townsville, held a public hearing with four stakeholder groups, and received four submissions. The committee recommended the bill not be passed, finding it would unduly restrict ordinary business activities and was inconsistent with fundamental legislative principles. The committee also recommended further work to assess how legislative intervention could provide certainty to the local community and workforce.
Key findings (5)
- The committee concluded the bill did not provide sufficient justification for restricting ordinary business activities, and that legislating a business into contractual relations would be inconsistent with fundamental legislative principles.
- Glencore and the Department of Resources argued the bill was unnecessary because existing regulation, including development plan requirements under the Mount Isa Mines Limited Agreement Act 1985 and the Mineral Resources Act 1989, already provides appropriate ministerial oversight.
- The Queensland Resources Council and Glencore raised significant sovereign risk concerns, warning the bill could deter future investment in Queensland by creating uncertainty about the stability of the regulatory environment.
- The Australian Workers' Union and Mount Isa residents highlighted the devastating community impact of the mine closure, including property value collapse, job losses, and damage to the town's economic viability as the capital of the North West Minerals Province.
- The committee acknowledged the profound impact on the Mount Isa community but expressed optimism about the region's future role in the critical minerals industry, particularly with the government's CopperString infrastructure investment.
Recommendations (2)
- The committee recommends the Mount Isa Mines Limited Agreement (Continuing Mining Activities) Amendment Bill 2024 not be passed.
- The committee recommends that further work is undertaken to more fully assess how any legislative intervention could provide additional certainty to the local community and workforce.
Committee report tabled