Australia’s Nyrstar Smelters Secure $105M Government Funding Until End of 2026
Synopsis
The federal, Tasmanian and South Australian governments have announced a new $105 million funding package for Nyrstar's Hobart and Port Pirie smelters. The support will help keep both facilities operating until the end of 2026 while funding studies into future upgrades and critical mineral production. The package is expected to protect hundreds of direct jobs and thousands of indirect jobs across both states. Governments and company leaders say the investment could strengthen Australia's critical minerals supply chain, though further support may still be needed as challenging global market conditions continue.
The Australian federal government, joined by the Tasmanian and South Australian governments has unveiled a new $105 million aid package to support Nyrstar’s smelting operations in Hobart and Port Pirie until end-2026.
The financing follows a previously announced $135 million support package from last August which expired on the May 1. The new help seeks to continue operations, while also helping the firm decide how to grow next.
New funding package for smelter operations
As part of the new deal, $62.5 million from the Commonwealth and $35 million from South Australia and $7.5 million from Tasmania will be paid into a bank account operated as a conditional deposit held by Germany.
The cash is meant to keep both smelters running while Nyrstar continues studies on possible upgrades and expansions. It will complete a pre-feasibility study and continue work on a two-year expanded feasibility study focused on increased production of critical and strategic minerals.
Federal Industry Minister Tim Ayres said the investment would increase Australia's role as a supplier of critical minerals to support supply chains for technology, defence, energy and digital industries.
Supporting Hundreds of Jobs in Tasmania, South Australia
The funding package is set to save hundreds of jobs across the states. Tasmanian Premier Jeremy Rockliff claimed the Hobart zinc smelter directly employed about 550 workers and supported another 1,000 jobs indirectly across Tasmania. If Nyrstar goes under, Hiscall said the loss of such an operation would hurt the state economy for years.
The Port Pirie smelter itself directly employs just under 800 people in South Australia. SA's Premier Peter Malinauskas said the facility still has significance for not just the local community but Australia's wider industrial and manufacturing capacity.
Critical Minerals Expansion Under Consideration
Establishing the capacity to ramp up production of critical minerals at the Port Pirie site is a key priority under the new funding. Scrap metal is a common material incorporated into defence applications and its importance has grown further since China announced an export ban on the metal. The studies funded under the package will help define the extent of future upgrades at both sites, Nyrstar said.
Smelters need more support as market pressures persist
Hobart and Port Pirie smelts have suffered serious problems in years of poor global market conditions. Trafigura, Nyrstar’s parent company previously said its smelters were uncompetitive assets that had only continued to lose millions of dollars a month in what it dubbed a distorted market environment.
Once continued, feasibility work will resume later this year with Hobart smelter general manager Todd Milne saying the business would likely need more government support. Mr Milne also claimed the facilities are essential to Australia's manufacturing sector, providing sulphuric acid among other products essential to industrial supply chains and base metals and critical minerals.
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