Smelter bailout to fast-track critical mineral capacity

Perth Now

5 hours ago

Two Australian smelters will pivot to producing critical minerals in an ambitious modernisation, supported by a taxpayer bailout to protect jobs.
The governments of South Australia and Tasmania on Tuesday announced state and federal contributions to the $135 million package for smelters operated by international producer Nyrstar.
Combined with investment by Nyrstar, the package allows the company to maintain operations while planning to potentially rebuild and modernise both its Port Pirie lead smelter in SA and its zinc smelter in Hobart.
The funding will also help fast-track feasibility studies into critical metals production.
The company has blamed its financial woes on China's "market distortion" through heavy subsidies for Chinese companies.
Nyrstar will explore the potential production of essential critical minerals including antimony and bismuth at Port Pirie and germanium and indium at Hobart.
As Australia's only lead refiner and largest zinc refiner, Nyrstar contributes about $1.7 billion annually to Australia's economy, supporting 1400 direct jobs and 6647 indirect jobs.
The critical minerals are considered vital for sectors including defence, clean energy, transport, advanced manufacturing and hi-tech applications.
An immediate focus of the package is an antimony pilot plant in Port Pirie, which if successful would make it the only producer of antimony metal in Australia and one of the few producers globally.
Antimony is an alloy hardener for other metals in ammunition and critical to manufacturing semi-conductors found in electronics and defence applications.
The support will also fund "asset integrity projects" including a major maintenance project in Port Pirie requiring 350 contractors and 90 suppliers, and major furnace and wharf investments in Hobart involving 200 contractors and suppliers.
The support demonstrates the strategic importance of Australian operations in "extremely challenging global market conditions", Nyrstar global chief executive officer Guido Janssen said in a statement.
SA Premier Peter Malinauskas said it was an opportunity to transform the Port Pirie smelter and secure its long-term future.
"The transformation of the smelter into a producer of critical minerals would put our state at the forefront of a global supply chain that is vital to clean energy, defence, and high-tech manufacturing," he said.
Independent Tasmanian MP Andrew Wilkie said the survival of the zinc works, along with other facilities like Liberty Bell Bay, Mt Isa and Whyalla, was "central to Australia's economic future and national security".
"When it comes to critical minerals and rare earth minerals in particular, Australia is remarkably well positioned to be a globally important supplier."
Mining giant Glencore faces similar challenges at its Mt Isa copper smelter and Townsville refinery, and warned it will be forced to put both facilities into care and maintenance mode - risking thousands of jobs - if it does not receive taxpayer assistance.