Port Pirie smelter losses revealed as SA taxpayers chip in more millions
The Singaporean owner of the Port Pirie smelter reveals how much it is losing as the government hands over another $35 million in SA taxpayer funds.
A new $105 million package to support the overseas owner of the Port Pirie smelter has been secured, with the SA taxpayer on the hook for another $35 million to support the struggling industrial facility.
The general manager of Nyrstar, the owner of the smelter, today claimed the company was losing $15 million per month on its Australian operations because of a “fundamental shift in the smelting business”.
It comes as Whyalla steelworks, buoyed by more than $2 billion of state and federal government money, has been dormant since April – the premier confirming today its blast furnace was still shut down.
Announced today, the South Australian government is joining forces with the federal government and Tasmanian state government as key feasibility work at Nyrstar’s Port Pirie and Hobart operations continues.
According to the Federal Government’s announcement, the funding will support operations at both smelters during 2026, helping maintain vital industrial capability and jobs.
It was expected the new money would prop up both smelters until the end of November this year.
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Nyrstar is a major employer in the region, with around 1,050 workers at the Port Pirie facility, representing approximately 10 per cent of the local workforce.
Federal Industry and Innovation Minister Tim Ayres said this money would support the continued operations of the facilities in SA and Tasmania as the “next phase of work is completed”.
“We are backing Australian industry and ensuring we maintain the capability to refine and process the minerals the world needs,” Ayres said.
“This is about securing jobs, strengthening our industrial base, and positioning Australia higher up the global value chain.”
The latest announcement comes after a $135 million rescue package supporting Nyrstar smelters in South Australia and Tasmania expired in May. Those funds had all been used up now.
That left workers in limbo, with the state government having made payments to keep the facility operational in the meantime, Treasurer Tom Koutsantonis said last week.
The state government previously invested $55 million with the Commonwealth Government contributing $57.5 million and the Tasmanian government contributing the remaining $22.5 million.
The 130-year-old smelter at Port Pirie was struggling financially prior to the joint investment in 2025, with Nyrstar’s Singaporean owner Trafigura calling for government support in order to stay afloat.
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The Federal Government said Nyrstar was delivering on its commitments under the initial support package, noting the first shipment of antimony metal made earlier this year.
Nyrstar will also participate in a joint review in the coming months to provide governments with a “clear, shared framework to determine the long-term pathway for these sites”.
“We are pleased that we have reached agreement to allow this vital feasibility work to continue, supporting hundreds of jobs in Port Pirie,” Premier Peter Malinauskas said.
“The global instability in recent months has only underscored the importance of Australian sovereignty.
“The possibility of producing antimony and other critical metals in Port Pirie presents a unique opportunity to deliver what our nation, and indeed the world needs
“Examining that opportunity thoroughly requires time, and this investment on behalf of three governments ensures that important work can continue apace.”
Nyrstar claims millions in losses
Speaking at a press conference, Nyrstar general manager Darin Cooper claimed the company was losing approximately $15 million per month on its Australian operations, which also included a zinc smelter in Hobart.
“The change in the smelting business, the loss of what’s called treatment charges, the change in most of the financial metrics which make up a smelting business, those have been a long time coming, those are what have dramatically eroded the profitability of smelting across most of the world,” Cooper said.
“Even in China, their smelters are seeing a significant impact on profitability. That’s what’s leading to the losses.
“It’s not about the performance of the smelter itself… it is that fundamental shift in the smelting business which is leading to these losses.”
Cooper said the extra funds would enable a “long-term structure and support mechanisms” to give Australia sovereign smelting capability.
“Which ensures that countries can make those critical metals, which are absolutely necessary for today’s society,” Cooper said.
“It’s not about a bailout.”
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