STEVE AUSTIN, HOST: So let's go to how the Federal Government sees it. Bob Katter, the Federal Member for Kennedy, says this proposal is a band‑aid solution. State and Federal Governments split the costs. Federal Industry Innovation and Science Minister, Tim Ayres says yes, the deal will have a great impact on the region.

SENATOR TIM AYRES, MINISTER FOR INDUSTRY AND INNOVATION AND MINISTER FOR SCIENCE: Well this is an important national industrial capability. Making copper metal is important for Australia's future economic resilience and our future security in a world that we shouldn't be complacent about. So Australian industry and Australian manufacturing matters. Of course, in the region it means thousands and thousands of jobs, not just in the Glencore Copper Smelter but in all of the related industrial facilities and in current mining and future jobs in mining and processing. This is an important industrial deal, but the work starts now to secure the long‑term competitiveness and future for this vital industrial region.

AUSTIN: What is required of Glencore in return, Tim Ayres?

AYRES: Well the deal, of course, has a series of formal requirements to maintain the employment footprint, to engage with the Commonwealth and Queensland Governments on a regular basis about their progress. But what is really engaged here is, firstly, a transformation effort that is about all of us working collaboratively together in a partnership to secure the future of the region. Not just the Queensland Government and Glencore and the Commonwealth, but also the other industrial players, the trade unions, local government, the Townsville refinery. This is an industrial ecosystem like no other in Australia where each of these facilities and mines is interdependent on the other. It's thousands of jobs, it's current industrial capability, and with the Albanese Government's Future Made in Australia plan, of course we've got our eyes on the horizon here as well, about making sure that we secure our present Made in Australia so that we can secure A Future Made in Australia in metals processing and critical metals processing.

AUSTIN: Does it bind Glencore legally to keeping the smelter going beyond 2028?

AYRES: This is a three-year deal, Steve. It's a legal agreement. It has all of the kind of protections that are required, but I don't want to kid people on about it, this secures the future of the facility over that period. But as I say, it is a platform for future work, not in 2028 and 2029, but in 2025, 26, 27 to secure the viability, not just of that smelter in the long‑term but that whole industrial ecosystem that's so important for North Queensland in employment terms and economic activity terms, but we're here at the table because it's also important in national interest, sovereignty and industrial capability terms.

AUSTIN: I'm speaking with Tim Ayres, the Minister for Industry, Innovation and Science. This is 612 ABC Brisbane. I'm asking Tim Ayres about the deal, the taxpayer bail out of Glencore.

Glencore have indicated that the Mount Isa Copper Smelter could be shut down before the end of next year, even after securing the bail out funding from taxpayers, and the reason appears to be the Dyno Nobel fertiliser manufacturing plant and mine, of which the copper smelter and the plant are inextricably linked according to Glencore. Did you know that, Tim Ayres?

AYRES: Of course, this is an industrial region where every facility, you know, as I said, there is an interdependence between these facilities. They exist because of each other. And we would be not doing our job if we weren't engaged with players like the operators of Phosphate Hill, Dyno Nobel, and that's why this transformation effort is so important. It's not exclusively about Glencore this effort.

AUSTIN: Did they tell you that they may still shut down the Mount Isa Copper Smelter before the end of next year?

AYRES: Well we've got a deal that secures the three years. But I don't want to kid people around, this is an important national effort that is squarely aimed at Phosphate Hill, the Incitec Pivot facility that is also in Mount Isa, the Townsville refinery, but also the current junior miners, you know, the smaller miners who provide ore to the facility. They all rely upon the facility.

If there's an interruption, this has always been the case since these facilities have been set up. If one of them falls over it imperils all of the others. That's not new news, Steve. It's not news to people in Mount Isa. They know that all of this comes together. That's why it's such an important industrial ecosystem. Everything depends upon the other. We're very clear eyed about that. That's why ‑‑

AUSTIN: I understand that.

AYRES: - we've been ‑ that's why we've acted to secure the smelter, but of course there's more work to do.

AUSTIN: Okay, so this is only stage 1.

AYRES: We don't shy away from that.

AUSTIN: This is only stage 1 really.

AYRES: Well it's stage 1, there's going to be many stages, Steve, and they're going to go forever. I want this industrial facility to be operating for decades and decades to come, and that means we all need to work together. We've all got a role to play.

AUSTIN: Tim Ayres, the reason why I'm being so annoying on this point is we're just trying to get clarity because Dyno Nobel, who are trying to sell their manufacturing plant, and they have said it'll be shuttered unless a new owner buys it before the end of March. That's only six months away. Beyond that date they could basically start a closure. Glencore say that Dyno Nobel acid plant and the Glencore Copper Smelter are inextricably linked, in other words one can't operate without the other, Tim, which is why I'm being so annoying about harking on about this point. I'm trying to get clarity what may happen.

AYRES: Steve, it's not annoying at all. It's exactly the right questions and they're the questions that people in Mount Isa will not ‑ will be asking not just today but over the course of the last 12 months as there's been uncertainty about this facility.

They all know, and the Commonwealth Government very aware, as is the Queensland Government, about the interdependence of these facilities. That's why the work will never stop to secure the viability of this region.

We can be confident about the future ‑‑

AUSTIN: So what happens in March of next year if Dyno Nobel don't get a buyer for their facility in Mount Isa?

AYRES: Well, I met with Dyno Nobel's senior management, of course we're engaged with them to make sure that we understand they are exiting the business because their firm is focussed on retreating to what they see as their core activities. It's not an issue about confidence in the region. They have made a decision; there are of course complex issues around each of these businesses.

We're working those through the fundamental ingredient that is required to secure the future of this system in Mount Isa, surrounding areas and in Townsville, is security around the smelter. We have achieved that. But there is going to be more work to do. I haven't been backwards in coming forwards about that. It's what I said yesterday when I made the announcement. This is step one.

We are going to continue the work because it's the interests of Queenslanders and North Queensland, but it's in the national interest as well, Steve, and we've done what is required but there is more work to do and that work will never stop.

AUSTIN: Minister, thanks for your time.

AYRES: Thanks, Steve.

AUSTIN: Tim Ayres, Federal Minister for Industry and Science.

ENDS.