Nyrstar has secured $135 million in transitionary funding from the Australian, South Australian and Tasmanian governments to support its critical metals processing operations in Port Pirie and Hobart.
The funding package, announced on 5 August, aims to maintain the company’s current multi-metals manufacturing activities while enabling engineering and feasibility work for a potential major rebuild of its Australian smelters.
It will also support Nyrstar’s plans to fast-track studies into the production of critical minerals, the company said in a news release.
According to Nyrstar, the funding, combined with continued investment from its shareholder Trafigura, will help the company assess the viability of producing critical metals such as germanium and indium in Hobart, and antimony and bismuth in Port Pirie. The company said it would initially prioritise an Antimony Pilot Plant in Port Pirie.
Nyrstar Global Chief Executive Officer Guido Janssen welcomed the joint government support, saying it highlighted the importance of the company’s Australian operations.
“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,” Janssen said.
The funding will also be used for asset integrity projects at both sites, including scheduled maintenance at Port Pirie and major furnace and wharf upgrades at Hobart.
Nyrstar Australia CEO Matt Howell said the company’s long-standing operations could evolve into a hub for critical metal supply.
“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,” Howell said.
“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.”
Nyrstar contributes around $1.7 billion to the Australian economy annually. The company directly employs about 1,400 people and supports over 6,600 indirect jobs.
According to the company, the first stage of the transitionary funding will support significant investments requiring around 350 contractors and 90 suppliers in Port Pirie, and approximately 200 contractors and suppliers in Hobart.
