Critical metals producer Nyrstar secures $135m bailout
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The news: Critical and strategic metals producer Nyrstar has secured $135 million from the Commonwealth, South Australian and Tasmanian governments to keep its Port Pirie and Hobart facilities running and progress plans for expanded critical metals production.
The numbers: The federal government will invest $57.5 million, while the South Australian government and Tasmanian Government will inject $55 million and $22.5 million respectively.
The context: Both the multi-metals processing facility at Port Pirie, South Australia and the zinc smelter at Hobart are loss-making. The Hobart smelter was put under review in March.
The support package, in addition to investment from Nyrstar and parent company Trafigura, will support ongoing operations and the progression of engineering planning for the production of critical minerals germanium and indium in Hobart and antimony and bismuth in Port Pirie.
Nyrstar’s initial focus will be on developing an Antimony Pilot Plant in Port Pirie. Funds will also support “asset integrity projects including critical scheduled maintenance activities at Port Pirie and Major Furnace and Wharf Investments at Hobart”, according to Nyrstar.
The company operates Australia’s only lead refiner and the largest zinc refiner in the country.
What they said: “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,” Nyrstar global CEO Guido Janssen said.
Industry and Innovation Minister Senator Tim Ayres said: “If pilot studies are successful this would position Port Pirie as Australia’s only producer of antimony metal and one of the few globally, supporting sovereign capability in defence and advanced manufacturing”.
A spokesperson for the National Reconstruction Fund Corporation told Capital Brief that "the metals processing industry is important to Australia and the NRFC can play a potential role in helping support it" but did not comment specifically on Nyrstar.
