Glencore say they are looking at options on what to do with the old Mica Creek power station near Mount Isa.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Mica Creek Power station sits on land in the Mount Isa Mines mining lease and was previously owned and operated by Glencore subsidiary Mount Isa Mines.
On June 27, Stanwell returned the Mica Creek Power Station sublease to Mount Isa Mines after 25 years of government-owned operation.
The 60-year-old power station was largely beyond the end of its operational life with only a couple of units still operable.
The former Stanwell station was mothballed at the end of 202.
Glencore said Stanwell subleased the land from them in 2011 after taking over Mica Creek Power Station from CS Energy but Stanwell and Glencore have recently finalised an agreement in which Stanwell surrendered the Mica Creek Power Station sublease to Glencore.
"Return of the sublease to Glencore is subject to approvals and a range of conditions being met with the regulators and third parties," Glencore said in a statement
"This means Glencore will assume full responsibility for these assets going forward.
"Glencore is looking at options for the assets at Mica Creek Power Station as part of considering our overall energy needs for our mining and metals processing operations in Mount Isa going forward."
Glencore said that given the current challenges in the national energy market our key focus is on energy security and price certainty.
"Our energy demand varies materially across our individual assets in the region over the short, medium and long term - we are managing this by developing a portfolio of energy options," Glencore said.
Minister for Energy Mick de Brenni said restoration of the power station was not possible.
"I have been deeply engaged on energy reliability issues for the North West including a connection for the North West power system to the National Electricity Market," Mr de Brenni said.
"I sought advice to determine if recommissioning Mica Creek was possible, and was advised by experts that it was not commercially or fiscally viable to restore. For that reason, we have not extended the lease on the site, and instead are exploring options to connect the North West to the National Electricity Market."
Stanwell and Glencore engaged with the relevant regulators and other third parties to transition the necessary approvals and agreements to Glencore.
At the time the sublease was surrendered, there were three remaining Stanwell employees.
All three of these employees have taken up new roles with Glencore or the proposed operations and maintenance service provider for the Mica Creek Power Station.
ALSO IN THE NEWS:
Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content:
- Bookmark https://www.northweststar.com.au/
- Make sure you are signed up for our breaking and regular headlines newsletters
- Follow us on Twitter
- Follow us on Instagram
- Follow us on Google News
Contact us at nwseditorial@northweststar.com.au