Mali pledges millions as Port Pirie smelter rescue plan announced
A $135 million package will prop up ailing metal smelters in South Australia and Tasmania, including the Port Pirie facility owned by Nyrstar.
The Malinauskas Government has announced it will join with the Tasmanian and Federal governments in supporting crucial smelting infrastructure with a $135 million rescue package.
South Australia will invest $55 million towards the $135 million package, with the Commonwealth spending $57.5 million and the Tasmanian government contributing the remaining $22.5 million.
The 130-year-old smelter at Port Pirie has been struggling financially in recent months, with Netherlands-based owner Nyrstar calling for government support in order to stay afloat.
According to Nyrstar, the site has over 800 employees and 250 contractors. It is one of the world’s largest multi-metal smelters and processes and refines lead, zinc fume, copper matte and by-products like sulphiric acid.
The owner of the facilities, which also operates smelters and mining operations in Europe and the USA, claimed it was losing millions of dollars per month due to the influence of China.
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Nyrstar is itself owned by Trafigura – a Singapore-based multinational that’s one of the world’s largest suppliers of commodities.
This new cash injection would transform both the Port Pirie and Hobart smelters into “modern facilities capable of producing critical metals”, and effectively protects the jobs of about 1400 Australians directly employed by the European company.
The support will be coupled with further investment from Nyrstar, and will enable the company to maintain its operations, progress detailed engineering plans to rebuild and modernise the Australian smelters, and fast-track feasibility studies into critical metals production.
This includes the creation of a pilot plant at Port Pirie to produce antimony. If successful, Port Pirie would be the only place in Australia that could produce antimony metal, used as an allow hardener for other metals in ammunition. It is also used in the manufacture of semi-conductors.
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A major maintenance project at Port Pirie will also be undertaken requiring 350 contractors and 90 suppliers, while in Hobart a major furnace and wharf investments project will get underway.
“Nyrstar and its parent company Trafigura will co-invest in these facilities and lead feasibility, fast-track pilot projects and facility upgrades to secure their future operations,” Federal Minister for Industry and Innovation Tim Ayres said.
“Nyrstar contributes $1.7 billion to the Australian economy annually, directly employing 1,400 Australians and supporting over 6,600 indirect jobs.
“Through this transformation, Nyrstar aims to explore possible production of antimony, bismuth, tellurium, germanium and indium, minerals vital to clean energy, defence, and high-tech sectors.”
Ayres labelled the deployment of the antimony pilot plant at Port Pirie “a priority”.
“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,” he said.
“Sustainable and competitive smelting capabilities in Australia that can deliver critical minerals projects are part of the Albanese Labor Government’s Future Made in Australia agenda.”
South Australian Premier Peter Malinauskas said the package was an “opportunity to transform the Port Pirie smelter and secure its future for the long term”.
“Working with Nyrstar and the Commonwealth, we can modernise the Port Pirie smelter and take advantage world’s desire for critical minerals,” he said.
“There is no doubt the Port Pirie operations have faced challenges from global forces largely beyond its control.
“But the transformation of the smelter into a producer of critical minerals like antimony would put our state at the forefront of a global supply chain that is vital to clean energy, defence, and high-tech manufacturing.”
