On Tuesday, the Queensland and federal governments committed $600 million over three years to keep the Mount Isa copper smelter and Townsville copper refinery in operation, protecting 600 jobs.
Dr David Whittle, the co-founder of the Critical Minerals Consortium, said that while Australia needed to preserve critical mineral industries, "ultimately, we also need to get paid for it".
"So there needs to be some wheeling and dealing on the part of the federal government with our partners to ensure that they're helping with this, we're the providers," he said.
China's successful 40-year project to exert control over the supply chains it needs for its vast manufacturing capability had major implications.
"Copper is a big deal - it's already in short supply globally, and China controls a significant proportion of the world's smelting capability," Dr Whittle said.
"This opportunity is only going to be realised if we can get some preferential deals of some kind with our trade and security partners, so that they are providing enough funds to these mines ... to make it worthwhile to actually produce these minerals in Australia.
"Where copper comes into the picture, especially now, is that the United States has just added copper to their critical minerals list."
He noted that Prime Minister Anthony Albanese indicated this week that he would discuss the preferential supply of critical minerals to the US when he meets President Donald Trump.
"We don't know what the details of that are, but hopefully part of that is some support from the US in maintaining those supply chains, and if they want preferential supply, hopefully they're prepared to pay for it," he said.
"So preserving that capability in Mount Isa is strategically important to us as a country and our broader trade and security partners."
Dr Whittle also noted that many other industries relied on the copper, lead, zinc and silver produced at Mt Isa.
"The smelter also produces significant quantities of acid as a by-product, and that acid is used in manufacturing and in other mining operations," he said.
"So if that acid supply dries up because the smelter closes, then that's going to have impacts on many other businesses around the place."
The Association of Mining and Exploration Companies said keeping the Mount Isa smelter open was "the right decision for Queensland and Australia".
"Thousands of jobs depend on it, not just within the operation, but across the broader North West Minerals Province community," AMEC chief executive Warren Pearce said.
"This investment ensures Australia retains critical processing capability at a time when global demand for our minerals is at a premium," he said.
"Knowing there's a viable processing pathway in place helps justify new exploration investment and keeps the pipeline of future projects alive."
