Interview with ABC Queensland Northern Drive

ADAM STEPHEN, HOST: The Federal and Queensland Governments have announced a $160 million loan facility to help secure the future of the Phosphate Hill fertiliser plant. This facility outside of Mount Isa in the North West minerals province is Australia’s only domestic ammonia fertiliser producer. It’s also been linked to the ongoing operation of Glencore’s Mount Isa Copper Smelter and Townsville Refinery. 

The governments say the support follows the sale of Phosphate Hill to Mayfair, and will help modernise the site whilst dealing with higher sulphur costs. But does it pass the pub test? The ABC’s Meghan Dansie spoke with Federal Industry Minister Tim Ayres about why this deal matters for North Queensland. 

SENATOR TIM AYRES, MINISTER FOR INDUSTRY AND INNOVATION AND MINISTER FOR SCIENCE: Well, it's a jointly funded loan from the Albanese Government and the Crisafulli Government. So, the State and Federal Governments working together here to make sure that we support the ongoing operations in Phosphate Hill, that the sale is executed properly, and 500 jobs secured. Two and a half thousand jobs in the broader supply chain in the Mount Isa region. This is a really important industrial facility. Delivers for North Queensland industry but it delivers for the agriculture sector as well.

MEGHAN DANSIE, INTERVIEWER: There are many small and medium-sized businesses around the country that have never had federal assistance. Is it fair to be spending $160 million of taxpayer money on assisting a mining company?

AYRES: Well, this facility is Australia's only domestic producer of ammonium phosphate fertiliser. It's absolutely critical for our agriculture sector that we continue onshore production of ammonia phosphate fertiliser. It's in Australia's national resilience interest and the interest of our agriculture sector. More broadly, this facility is a critical part of the North West Queensland industrial ecosystem. Its relationship with the copper smelter, [and] the Townsville Refinery, supports thousands and thousands of blue-collar jobs. There's the Albanese Government, our Future Made in Australia approach, the biggest pro-industry package in Australian history, at work in Queensland.

INTERVIEWER: Well, we did have the $600 million bailout package for the Mount Isa smelter, and now this loan facility, albeit to a different company. How much is the Government willing to shell out to keep propping up that supply chain?

AYRES: Well, this is an important supply chain for Australia's economic resilience and for the jobs it delivers in regional Australia. The Albanese Government's unashamedly pro-manufacturing. I want to see our resource industry continue with our excellent mining investments but we also want to see value-add onshore here in Australia in processing and manufacturing. 

And that's what securing this facility – in what is a very tough environment. The Strait of Hormuz conflict has driven sulphur prices up, in particular, in a very dramatic way. What this investment does is make sure that this production capability doesn't go offshore as well. We're determined to deliver a stronger future for heavy industry in Australia. This is the right thing to do, calibrated at the right level, and it will deliver for thousands of blue-collar jobs.

INTERVIEWER: Competitive gas prices have been an issue for previous owners of Phosphate Hill. What has the Government done to address that?

AYRES: Well, I agree that gas competitiveness has been a key issue for Australian manufacturing. That's why the Albanese Government has delivered onshore gas reservation strategy that will divert 20 per cent of our export equivalent for Australian users. That is, delivering lower cost, more supply of Australian gas for Australian industry, backing in heavy industry and backing in every Australian energy user to have a more competitive energy future. It's a big reform, it's a contested reform, but it's the right thing to do for Australian industry.