Federal, South Australian, Tasmanian governments issue second bail out for Nyrstar’s smelters
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The news: Minerals processor Nyrstar will receive an extra $105 million to help keep its Port Pirie and Hobart smelters operational in 2026 and to advance feasibility studies to expand critical minerals production in Australia.
The context: Nyrstar previously received a $135 million funding package from the three Australian governments in August 2025, but that funding reportedly expired on Friday.
As a condition of the new funding package, Nyrstar will need to participate in a Joint Review with the three Australian governments in “coming months” to provide “a clear shared framework to determine the long-term pathway for these sites”, according to a joint government statement.
Nyrstar will also work to complete a pre-feasibility study and progress a further feasibility study relating to critical minerals production at its smelters.
This includes planning for germanium and indium production at its Hobart facility as well as antimony and bismuth at its Port Pirie facility. Currently, Nyrstar operates Australia’s only lead refinery and is the country’s largest zinc producer.
What they said: “This investment supports the continued operation of these facilities while the next phase of work is completed,” federal Industry and Innovation Minister Tim Ayres said.
“We are backing Australian industry and ensuring we maintain the capability to refine and process the minerals the world needs. This is about securing jobs, strengthening our industrial base, and positioning Australia higher up the global value chain.”
South Australian Premier Peter Malinauskas said: “The global instability in recent months has only underscored the importance of Australian sovereignty.”
He also flagged that “examining the opportunity [of producing antimony and other critical minerals in Port Pirie] thoroughly requires time and this investment on behalf of three governments ensures that important work can continue apace”.
Tasmanian Premier Jeremy Rockcliff said: “This package helps secure the immediate future of more than 600 direct jobs and over 1,000 indirect jobs that support families, contractors and suppliers across Tasmania.”
“Nyrstar contributes more than $510 million to the Tasmanian economy each year and plays a critical role in sustaining economic activity across the State,” he said.
The source: Joint government media release
