ZARA MARGOLIS, HOST: Federal Minister for Industry and Innovation Tim Ayres was in Mount Isa yesterday to make the announcement, also joined you this morning on Breakfast.

Minister, thanks so much for making time this morning.

SENATOR TIM AYRES, MINISTER FOR INDUSTRY AND INNOVATION AND MINISTER FOR SCIENCE: Oh, thanks, it was good to meet you yesterday in Isa too.

MARGOLIS: So just to recap what does this deal include?

AYRES: Well it's a three-year deal. It's a 50/50 deal with the Queensland and Commonwealth Governments, so backed in by the Albanese Government, $600 million worth of support for this important business.

But as you said in your introduction, it's not just this business that depends upon the smelter. There are hundreds and hundreds of jobs there in Mount Isa and the related Incitec Pivot facility. There's the Phosphate Hill Dyno Nobel facility, there's the Townsville refinery, there's the knock-on impact in terms of job security and future investments in copper mining.

And of course, the Albanese Government, we have our eye, on as part of our Future Made in Australia plan, future critical minerals production in the region.

So this is a big industrial ecosystem that sustains thousands of jobs, but it's also got a critical national role in securing Australia's future economic resilience.

MARGOLIS: Minister Ayres, I do want to talk about the Phosphate Hill side of things, but just before that as part of the announcement yesterday it included details or mention of a joint oversight committee that's going to be meeting monthly moving forward. Can you tell any more details about that?

AYRES: Yeah, of course. This package is important for securing the next three years, but the work to sustain this facility and this major industrial ecosystem started yesterday. That is, it's our job in partnership with our colleagues in the Queensland Government and with Glencore to make sure that we support not just oversight that the obligations that all of the parties have to this agreement are being followed through properly.

But this transformation study that is not just about Glencore but is about the whole industrial region, making sure that everybody's working together in a plan for future viability, that we're all pulling our weight, that we're all accountable, and that we're doing the things that it's necessary to do every week and every month to secure future efficiency and future competitiveness.

This is, as I think one of your listeners said, it's a three-year deal. The community's right to say, "Well what's the post‑2028 plan?" We are absolutely committed to the long‑term viability of this facility.

It's vital for the region but it's also important in national interest terms.

MARGOLIS: Federal Minister for Industry and Innovation Tim Ayres. Glencore's since said following yesterday's announcement, although they have said this before as well, that the viability of the smelter really intertwined with the future of Dyno Nobel's Phosphate Hill operations just down the road. They take the acid from there, Dyno Nobel, they now own the fertiliser plant. They've actually told us here at the ABC that if they don't find a buyer, they're going to close it by the end of next September, and on top of that Glencore said that they can't really operate the smelter without someone to take the acid. So with this in mind, what will this mean if the smelter isn't sending sulphur to Dyno Nobel? Is the future actually secured?

AYRES: Well that's what this is all about, interdependent industrial ecosystem where one facility depends upon the other, and they depend upon each other for their future viability.

The Townsville refinery too, absolutely vital for the existence of both of those facilities. So that's what this strategy is all about.

I've met with Dyno Nobel of course and spoken to them a number of times. We'll make sure that they are engaged in this process. The issues that confront that business are complex, as you say. The owner has plans for, you know, alternative ownership of that facility. Let's make sure we work together to secure the best new ownership possible for that facility in the community's interest, in your listening area's interest.

But also as I keep underscoring, this is important for Australia. That's why we're engaged here. That's why I was really pleased to announce this first step securing the three year future of the region, but I'm absolutely focussed on the real prize here, that is long‑term viability and Australia being a major manufacturer in metals, in strategic metals like copper, our plan to build our iron and steel industries, and of course our Future Made in Australia plan to manufacture critical metals here in Australia.

MARGOLIS: If Dyno Nobel don't get a buyer could the government take a stake in that?

AYRES: Well, let's work through the process one step at a time. I'm very focussed on the importance of this facility for the region, but the best answer, best answer here, is a commercial operator that's acting in the region's interest that's committed to the future of the region, that's making the kind of investments in that facility that are in the long‑term interests of its continued operation and its continued competitiveness. That's the real answer for the future here and that's what we'll be focussed on.

MARGOLIS: Minister Tim Ayres, I did see in another media outlet this morning saying that that seemed to suggest that if Phosphate Hill closed then the smelter could close before the end of next year. Immediately I saw this and thought, I thought it was saved yesterday. It's less than 24 hours and now we're talking that there could be bigger issues. How do you provide that reassurance to the community who maybe they were feeling confident yesterday, kind of throws a spanner in the works, doesn't it?

AYRES: Well let's have a bit of confidence here about the future. We've secured the future of the smelter over the three-year life of this agreement. There are reasons for optimism about the future of global copper market.

You know, copper is a vital metal for new industry and demand for it is going to continue to increase, and Australia is a stable supplier of copper metal to global industry.

As the manager of Glencore pointed out yesterday, at the moment Australian industry isn't on a level playing field. But demand for copper will continue to increase and we're very confident about the long‑term prospects of copper processing in Australia at both Mount Isa and Olympic Dam in South Australia, BHP's other facility, the second copper smelter in Australia. We are running this approach and this transformation effort to engage not just Glencore but the other industrial operators in securing the future of that whole industrial ecosystem.

So this is not job done, it is a commitment to continue to be engaged and to work hard together with the community. Everyone's got to step up here. Glencore, the other industrial operators, the mining sector, the trade unions, local government, the Queensland Government, the Commonwealth Government. We've all got a role to play here working together in the national interest to secure this vital outback industrial centre.

MARGOLIS: We're talking about two really big industries this morning here on ABC Northwest, the Mount Isa copper mine, Glencore also as we've discussed, Minister, the fertiliser plant now under pressure. What do you say to critics who say this rescue package actually represents a failure of long‑term industry planning by your Government?

AYRES: Well here we are with long‑term industry planning at the first opportunity here in North Queensland. There are always going to be challenges for Australian industry. This is the most pro‑manufacturing government Australia's ever had, with the largest manufacturing package of measures in Australian history.

The Future Made in Australia plan, $22.7 billion of support for future Australian metals manufacturing and manufacturing more broadly. $15 billion for the National Reconstruction Fund. I announced just a few weeks ago with Treasurer Jim Chalmers, $5 billion of that will be allocated to supporting industry to move to more efficient energy processes, to secure investment in Australian industry.

We are a pro‑manufacturing government, unashamedly committed to blue collar jobs, and those jobs aren't in our CBDs or our inner cities, they're in the outer suburbs and great industrial regions of Australia. That's where these investments occur and that's where we're going to be doing this work.

MARGOLIS: So good news then definitely this morning for the smelter. Will the fertiliser plant be the key focus next over the next six months?

AYRES: We're going to work with everybody, focussed on everybody participating, everybody lifting, everything contributing, focussed on the national interest and the region's interest. That's what North Queenslanders would expect, that's what Australians would expect. We're going to roll our sleeves up and keep on working in the national interest.

MARGOLIS: Minister, thank you so much for your time this morning.

AYRES: Thanks Zara, good to talk to you and to talk to your listeners.

MARGOLIS: That's Federal Minister for Industry and Innovation Tim Ayres.

ENDS.