STEVE AUSTIN, HOST: I spoke to Tim Ayres after five this morning and asked, how does the federal Albanese government see the viability, if they have one, of Mount Isa? 

SENATOR TIM AYRES, MINISTER FOR INDUSTRY AND INNOVATION AND MINISTER FOR SCIENCE:  Well the first thing to say is that this couple of months are a tough time for Mount Isa. There is a closure in Mount Isa mines that will mean as Glencore exits mining at Mount Isa that many hundreds of people will lose their jobs. They are good quality mining jobs that have sustained families, kids have grown up with mum's and dads working at that mine, and by the end of next month those mining operations will cease, and that is pretty tough for those families and pretty tough for Mount Isa itself. 

I'm travelling to Mount Isa today to meet with community leaders, to meet with Glencore, to make an assessment for myself of the future viability and the opportunities for minerals and minerals processing in particular in northern Queensland, Northwest Queensland. It is minerals rich with enormous opportunity for the mining industry and I want to make sure that where there are opportunities for minerals processing and good manufacturing jobs that the country takes them.

HOST: That's nice. But the Mayor of Mount Isa, Peta MacRae, says basically it's about have a major effect on the whole town. 

[RECORDING] PETA MACRAE, MAYOR OF MOUNT ISA: Well if the smelter and refinery were to close there's a combined impact of about 17,000 jobs between Mount Isa and Townsville. 

HOST: In other words, it has knock on effects. It would result in the shutting down of the rail line between Townsville and Mount Isa which is not subsidised in anyway, it has to survive by itself. So does the Albanese government acknowledge that the Mount Isa future has a state wide, if not national impact, Tim Ayres? 

AYRES:  Yes, we do. We are looking closely at the mine. That is a very significant economic problem. But it's really – what is the opportunity here? It is for the current smelting operations and their ongoing viability and for future minerals processing opportunities in the region. Critical minerals rich, are further copper mining opportunities in the region and that's why the Crisafulli Queensland Government and the Albanese Government are working together, travelling today with the Queensland Minister to make sure, we're in lock step assessing those issues together to make sure that we make good decisions about the future of the region. 

HOST:  What do you think Glencore, the Swiss commodities trader, should actually do then, Tim Ayres? 

AYRES:  Well, there is a very strong global market for copper. That company, both in its mining and smelting operations have been operating in the region for many, many years.   The mine itself is circa 70 years old. Copper processing in Mount Isa and Townsville are fundamental to that region's economy. There is a strong future. I want to see Glencore investing in more refining capability, more processing capability and contributing to the economic growth of the region.   

HOST:  Let me jump in there. Why should they do that Minister, when the Albanese Government prior to the federal election that you've just won put nearly $2 billion in to saving the Whyalla smelter? If I was in Glencore I can say, “Well it's obvious the government wants to run these things, let them save it?” 

AYRES: It's very important that corporate Australia learns the right lessons from the Whyalla intervention.

HOST: But Glencore is not Australian. Glencore is a Swiss commodities trader.

AYRES: Well, what I mean is corporations who are invested in Australia, the Whyalla intervention occurred against the backdrop of a company that ultimately was forced in to administration. That's what happened in Whyalla, a critical steel making facility for Australia, there is still a long way to go in the Whyalla intervention. Lots of work to do there. That is not the same situation that occurs across a range of minerals processing or metals processing facilities in Australia that are all under pressure at the moment. There is a strong future for minerals processing in Australia.   

HOST: Is Mount Isa part of the precious metals strategy that the Albanese Government is trying to run particularly in relation to China, is Mount Isa part of the precious metals strategy of the Albanese Government? 

AYRES: I think you mean - don't want to quibble.

HOST:  Rare earth, I'm sorry. 

AYRES: The critical minerals is the term that's used to describe, you know, that long set of rare earth, that the world is demanding. We know there are strong future markets. 

HOST: So is Mount Isa part of – what I'm trying to find out is Mount Isa part of the Federal Government's strategy? 

AYRES: Yeah so copper is a strategic mineral. It has real value. There is, in addition to that in the region, strong reserves of critical minerals and that's one of the reasons that we are of course engaged in all of this activity. So, there’s strong economic and social reasons that I pointed to. But also our ambition in future made in Australia that $23 billion package incentives in there designed to secure not just digging minerals up and exporting the raw product off shore but processing minerals here in Australia and we don't process minerals in the CBDs of our big cities. They have to be processed as close to site as possible, as close to our reserves of solar and wind energy to cheaply process them for the future. That's the future for Mount Isa. The question in front of that community - and of course in front of the Queensland government who are leading this process - what is the bridge to that future of investment in critical minerals processing.

HOST:  Okay. 

AYRES: How do we secure good jobs in that region, and I'm travelling there with an open mind. There's been strong work done by teams of officials working together from the Australian Government and the Queensland Government and I want to make it a testament for myself, will be meeting the mayor and business leaders in the region over the course of the day. There is a lot of work to do to work together to deliver an economic future for that region. There are immense challenges in front of this community, that's what happens when a regional community, when a major employer pulls out of part of their operations and there's pressure on the rest of their operations, of course, we have to point to the challenges and I will engage with them and anybody else who has got a stake in the future of that community because it's an important community to the country. 

HOST: If the mine is not saved or the smelter is not saved the rail line to Mount Isa closes down. The rail line is entirely reliant on profits or revenue generated from that western Queensland area. That will have a major knock on effect for industry in Townsville. Does the Federal Government acknowledge that? 

AYRES: Look there are consequences that flow - 

HOST: Right. 

AYRES:  - from economic implication. Now -

HOST: Let me jump in there Tim Ayres. What David Crisafulli says that Glencore needs to be a good corporate citizen.   

[RECORDING] DAVID CRISAFULLI, PREMIER OF QUEENSLAND: We're asking them to be good corporate citizens to a city that's on its knees. 

HOST:  Will you be meeting with Glencore, Tim Ayres? 

AYRES: Absolutely I will, and I had a meeting with Glencore and the Queensland Government yesterday in Brisbane. 

HOST:  And what did you require of them? 

AYRES: Well what I don't do is, we're engaging with governments and businesses directly, we are engaging the interests of that community and the interests of the country. They have put their position to the Commonwealth. We had a very good and constructive discussion with them. I agree with the Premier of Queensland. They have got responsibilities here, Glencore. And I expect them to work carefully and constructively with the Queensland Government. We will support those discussions in lock step with the Queensland Government. 

HOST:  How much time do you think Mount Isa then has, if the mine is about to close imminently in the next couple of weeks, and the smelter in theory it could be in the next six months to 12 months, how much time does Mount Isa have, Minister? 

AYRES:  Well, I don't set arbitrary deadlines. We will work carefully through the issues.

HOST:  No but the company does.

AYRES: Yeah, well I'll allow the company to speak for itself.

HOST:  You have been very generous with your time, Tim Ayres thank you very much and best of luck for your time in Mount Isa. 

AYRES: Thanks Steve.