A new report commissioned by Nyrstar has warned that Australia’s ambition to become a global leader in critical minerals exports is under serious threat due to mounting risks facing the nation’s lead and zinc refining sector.
The study, The Economic and Strategic Importance of Multi-Metals Processing, produced by economics research firm Mandala, concludes that without direct and targeted government intervention, the future of Australia’s multi-metals processing industry — and its critical minerals potential — remains increasingly uncertain.
The Mandala report underscores that safeguarding domestic lead and zinc processing is vital not only for economic reasons but also for national strategic interests.
It highlights that these metals are essential precursors for producing critical minerals such as antimony, bismuth, tellurium, germanium, and indium — materials considered crucial for defence, clean energy, high-tech applications, transport, and advanced manufacturing.
As one of the world’s leading exporters of refined lead and zinc and the holder of the largest reserves of both metals, Australia is uniquely positioned to benefit from rising global demand.
However, the report warns that if Australia were to lose its lead and zinc processing capabilities, rebuilding the necessary smelting infrastructure and workforce pipelines would be “near-impossible” due to prohibitive costs, extended timelines, and the loss of specialised skills.
International industrial policy settings are also distorting global markets, eroding the operating margins of smelters worldwide, and undermining the commercial viability of domestic processing.
Mandala’s analysis calls for decisive policy support to address these imbalances and modernise Australia’s refining infrastructure.
Recommended measures include improved access to capital financing, affordable domestic feedstock supplies, and strategic investments in energy and transport infrastructure.
Matt Howell, Chief Executive Officer of Nyrstar Australia, emphasised the urgency of coordinated action: “Australia’s multi-metals infrastructure is not only a great foundation to move downstream in the critical minerals supply chain, but it is our best chance to do so,” he said.
“Our lead and zinc refining capabilities in Port Pirie and Hobart are more than just smelters, they are national assets.”
The report also points to the growing global concentration of critical minerals supply, with China currently dominating between 52 per cent and 82 per cent of global production for several key minerals, leaving Australia and its partners exposed to supply chain and geopolitical risks.
Amit Singh, Managing Director of Mandala, reinforced the strategic significance of maintaining Australia’s refining capacity, stating: “Lead and zinc refining isn’t just about producing base metals, it’s the gateway to producing the critical minerals that power our clean energy and protect our nation.”
Nyrstar’s facilities in Port Pirie and Hobart, which together generated $1.7 billion in economic value last year and support over 6,600 jobs, are described as strategic national assets underpinning both regional economies and Australia’s sovereign industrial capability.
The Mandala report cites historical precedents for direct government intervention to support industries deemed critical for economic, strategic, security, or societal reasons.
The findings make clear that unless Australia acts swiftly to support and modernise its multi-metals processing sector, it risks forfeiting a once-in-a-generation opportunity to secure a leading role in the global critical minerals supply chain.
