Member for Traeger Robbie Katter has called for a shared equity arrangement for the Mount Isa copper smelter moving forward as Glencore seeks support to keep the key asset running.

Glencore this week said it was reviewing its copper smelter and Townsville copper refinery operations, which were under immense pressure due to an unprecedented decline in the global smelting market.

It came as the company confirmed a July closure date for the Mount Isa Mines’ underground copper operations.

Speaking in Parliament yesterday, Mr Katter repeated his push for the Mount Isa region to gain special economic zone status, saying it would help address ‘the bundle of problems we have with Glencore’.

“The smelter are now going to put their hand out for more money,” the Katter’s Australian Party leader said.

“If they want more money, there needs to be shared equity—shared ownership with other people. It needs to be community-based infrastructure, consistent with a special economic zone.”

Chief operating officer for Glencore’s Australian zinc and copper assets Sam Strohmayr said this week that the company was engaging with the State and Federal governments regarding support for the smelter.

It is facing a major capital investment decision in the second half of this year, with the smelter due for a stack reline or ‘rebrick’ in 2026.

Related: Glencore builds case for copper smelter support

Natural Resources and Mines Minister Dale Last described the Mount Isa Mines copper smelter as an important economic driver for North-West Queensland and said the State Government was working through several options to support its continued operations.

He said he was working collaboratively and urgently with Glencore on a path forward for Mount Isa, particularly around timeframes for the potential restart of mining at the Black Star project.

“I’m committed to securing a pipeline of projects for North-West Queensland to deliver jobs and opportunities over the long term,” Mr Last said.

In a media conference outside of parliament, Mr Katter said the North West needed to have a copper smelter but it did not have to be one run by Glencore.

“Let’s have other people buying an interest in that copper smelter. Let’s not just have one global commodity trading company owning that and defining our future based on them owning that and what they need to make it viable,” he said.

“Let’s have other owners of that copper smelter or let’s build a new one. And that’s been put forward by industry groups around Queensland … building a new smelter.”

Mr Katter said the end of the underground copper operations was a big deal for the region, and repeated his calls to allow another party to take over those mining activities.

“We should pull the likes of Glencore into line and say, ‘Buddy, if you are not going to mine it, you will have to move away and sell it to someone who will’,” he told Parliament.

“I can assure members that there are other mining entities in that region, in Australia and across the world … everyone is trying to get their hands on copper.

“We are saying that we will be a great minerals province, but this does not just happen; you need to facilitate it. The government needs to stand up and say, ‘Glencore, if you are not going to do it then move aside and let someone else do it’.”