New deal in works for Port Pirie smelter as funding expires
Taxpayers look set to provide more funding amid concerns for the future of more than 1000 smelter workers in Port Pirie as a $135 million assistance package expires today.
Uncertainty has emerged at Nyrstar for workers as a rescue package for its smelters in South Australia and Tasmania runs out today, taxpayers looking on the line for more funding support.
Premier Peter Malinauskas said he was “hopeful that by close of business today, we’ll see a renewed position from the three governments that are contributing to this effort for Nyrstar’s consideration over the coming days and weeks ahead”.
The Port Pirie plant is one of the world’s largest multi-metals smelters, processing and refining lead, silver, zinc fume, copper matte and by-products such as sulphuric acid.
In August 2025, the state, federal and Tasmanian governments stepped in to pledge $135 million to a bail out of Port Pirie’s metal smelter and Nyrstar’s zinc refinery in Hobart.
The state government invested $55 million 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 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.
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.
Premier Peter Malinauskas expressed concerns for the plant’s future, but said negotiations between the governments were ongoing.
Malinauskas is expected to address media and provide an update on negotiations shortly.
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In February, Nyrstar sent its first shipment of antimony to an east coast Australian manufacturer and expressed plans to export to Europe, Asia and the United States, with Malinauskas saying the milestone shipment was the start of the smelter reaching its export potential.
Federal Science, Industry and Innovation Minister Tim Ayres said in February the achievement “shows the value of government backing Aussie manufacturing and minerals processing capabilities to boost regional Australia’s role in the global critical mineral supply chain”.
“This is a great example of what can be achieved when we leverage Australia’s abundant natural resources, skilled workforce, existing facilities and innovative research to maximise opportunities,” Ayres said.
Antimony production began as a trial in late 2025, with Nystar planning to ramp up production to 2000 tonnes per year, and eventually 5000 tonnes per year by 2028.
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