International producer of critical and strategic metals Nyrstar has announced an agreement with the Australian, South Australian, and Tasmanian governments to provide $135 million in transitionary support for its domestic multi-metals manufacturing businesses at Port Pirie and Hobart.
This combined government backing, complemented by ongoing investments from shareholder Trafigura, will allow Nyrstar Australia to sustain operations while moving forward with engineering plans to assess a significant rebuild of its Australian smelters.
Simultaneously, the company seeks to expedite feasibility studies into the production of critical metals.
Nyrstar’s studies will focus on modifying operations to produce germanium and indium in Hobart and antimony and bismuth in Port Pirie, with an initial emphasis on accelerating an Antimony Pilot Plant in Port Pirie.
Antimony is an essential alloy hardener used in ammunition and batteries, and is critical for producing semiconductors in electronics, defense applications, and flame-retardant materials.
The government support will also fund asset integrity projects, including critical scheduled maintenance at Port Pirie and major furnace and wharf investments at Hobart.
In return, Nyrstar has committed to maintain investment in its current Australian operations and workforce, while considering broader redevelopment.
The company will collaborate with government stakeholders to develop the policies and frameworks necessary to secure and maximise its strategic multi-metals processing infrastructure.
Nyrstar Global Chief Executive Officer Guido Janssen expressed gratitude for the transitionary support, stating: “In the face of extremely challenging global market conditions, this support demonstrates the strategic importance of the Australian operations for sovereign capability and delivering the products needed globally for modern economies.
“This announcement is a credit to the teamwork and excellence of our teams at Port Pirie and Hobart and is an important step forward as part of our global focus on increasing critical and strategic metals production.”
Nyrstar Australia Chief Executive Matt Howell highlighted the long-standing legacy and growth potential of the company’s Australian operations:
“Port Pirie and Hobart represent a key part of Australia’s metals processing infrastructure. We have an opportunity to build upon this to create a new source of economic growth, producing metals for defence industries, renewable energy and high technology manufacturing.
“Through this partnership, Australia is demonstrating that it is at the forefront of taking meaningful steps to retain nationally strategic smelters and partner with industry to provide urgent short-term support, as well as work on solutions for their long-term viability.”
As Australia’s only lead refiner and largest zinc refiner, Nyrstar contributes about A$1.7 billion annually to the domestic economy and directly employs 1,400 Australians, supporting more than 6,600 indirect jobs.
Initial investments under this support package will involve an additional 350 contractors and 90 suppliers at Port Pirie and around 200 contractors and suppliers for corresponding works in Hobart.
