Thousands of jobs across Queensland have been secured after the federal and state governments finalised a $160 million rescue deal to keep the Phosphate Hill fertiliser plant operating, avoiding its potential closure.
The agreement involves a jointly funded loan package that supports the continued operation of Phosphate Hill, which is Australia’s only domestic producer of ammonium phosphate fertiliser (MAP/DAP). The facility is considered strategically important for both agriculture and industrial supply chains.
Under the deal, ownership of the plant has been transferred to Mayfair (via Ryowa II GPS Pty Ltd) after a sale by Dyno Nobel, with government financial support ensuring the site remains viable despite ongoing cost pressures and supply challenges.
👷 Jobs saved across multiple regions
The rescue package protects:
Around 500+ direct jobs at Phosphate Hill About 600 jobs at Mount Isa copper operations and Townsville refinery Thousands of indirect jobs across North and North West Queensland in transport, logistics, and contracting
In total, more than 3,500 jobs across the wider region are linked to the interconnected industrial network supported by the operation, according to industry estimates.
⚙️ Why the plant matters
Phosphate Hill is located roughly 140 km south-east of Mount Isa and is tightly connected to other major industrial sites, including:
Glencore’s Mount Isa copper smelter The Townsville port and refinery corridor Rail freight routes across North Queensland
The plant relies heavily on inputs such as sulphuric acid from copper operations and natural gas supply, making the entire system interdependent.
Industry leaders have warned that without intervention, the plant faced closure risks due to rising production costs, supply chain pressures, and global fertiliser market volatility.
🏛️ Government intervention
The deal is being described as a strategic intervention to protect:
Regional employment Australia’s sovereign fertiliser production capability Agricultural supply security
Officials say maintaining domestic fertiliser production is critical for farming industries, particularly grain, sugar and horticulture sectors that rely heavily on consistent fertiliser supply.
Queensland and federal ministers have framed the agreement as a “future-proofing” measure to stabilise North Queensland’s industrial base and prevent cascading job losses across multiple sectors.
📉 Previous closure risk
Before the deal, Phosphate Hill had faced possible shutdown due to financial pressures and uncertainty around long-term viability. Earlier proposals indicated the plant could have been closed if no buyer or support package was secured.
The new agreement removes that immediate risk and ensures continued operations under new ownership and financial backing.
