Funding lifeline saves smelters, more than 1000 jobs
More than 1,000 workers at two major smelters have been given a lifeline after a metal producer received $105 million in government support.
Joint federal and state funding will keep Nyrstar’s Hobart and Port Pirie, South Australia facilities operational until 2026, with the international company considering major investments in critical mineral production.
The deal comes after the $135 million rescue package expired in May and weeks of tense talks over how much taxpayer money would be on the table to keep the facilities safe.
Industry and Innovation Minister Tim Ayres said the new deal would keep workers in their jobs and protect Australia’s ability to process minerals vital to the defence, semiconductor, energy and automotive industries.
Headquartered in the Netherlands, Nyrstar is a major producer of lead, silver, zinc and other critical minerals at its Port Pirie and Hobart smelters.
“This investment supports the continued operation of these facilities while the next phase of work is completed,” Senator Ayres said.
“This is about securing jobs, strengthening our industrial base and positioning Australia further up the global value chain.”
The financing is crucial for Nyrstar to keep its smelters operational while completing a pre-feasibility study to expand and accelerate production of critical minerals, including antimony.
Under the earlier package, Nyrstar shipped Australia’s first shipment of domestically produced antimony metal, a step taken by governments towards more secure and sovereign supplies of the strategic mineral.
As part of the latest agreement, Nyrstar will launch a joint review with the federal, SA and Tasmanian governments in the coming months to map long-term options for the Port Pirie and Hobart facilities.
SA Premier Peter Malinauskas said the deal supported hundreds of jobs in Port Pirie and recognized the strategic value of producing antimony and other critical metals onshore amid growing global instability.
Tasmanian Premier Jeremy Rockliff said the Hobart smelter supports more than 600 direct jobs and more than 1000 indirect roles and contributes more than $510 million a year to the state’s economy.
Governments are selling the package as a hard-nosed industrial policy designed to keep regional workers employed and give Australia greater control over the critical mineral supply chains it relies on.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
