Nyrstar secures funding for critical metals processing

Critical and strategic metals producer Nyrstar has announced it has reached agreement with the federal, South Australian and Tasmanian governments for $135 million in transitionary support for its domestic multi-metals manufacturing business and sites at Port Pirie and Hobart.

The company says the combined support provided by the governments — together with ongoing investments backed by its shareholder Trafigura — will enable Nyrstar Australia to maintain its ongoing operations while progressing engineering planning to allow assessment of a significant rebuild of its Australian smelters and, at the same time, fast-track feasibility studies into critical metals production.

Nyrstar’s critical metals studies will explore what is needed to modify its operations to produce germanium and indium in Hobart and antimony and bismuth in Port Pirie. The company’s focus will initially be directed towards accelerating an antimony pilot plant in Port Pirie.

Antimony is an alloy hardener for other metals in ammunition and batteries and is critical to the manufacture of semiconductors found in electronics and defence applications. It is also used in flame-retardant materials.

The support provided to Nyrstar will also be targeted towards asset integrity projects including critical scheduled maintenance activities at Port Pirie and major furnace and wharf investments at Hobart.

As part of the agreement, Nyrstar has committed to continue investment in its existing operations and workforce in Australia while it progresses its consideration of a redevelopment. Nyrstar will also work with respective Australian governments to examine the necessary policies and pathways to safeguard and capitalise on these strategic multi-metals processing assets.

Nyrstar Global Chief Executive Officer Guido Janssen said the Nyrstar group was grateful for the transitionary support provided by the Australian, South Australian and Tasmanian Governments to Nyrstar’s Australian operations.

“In the face of extremely challenging global market conditions, this support demonstrates the strategic importance of the Australian operations for sovereign capability and delivering the products needed globally for modern economies,” he said.

“Port Pirie and Hobart represent a key part of Australia’s metals processing infrastructure. We have an opportunity to build upon this to create a new source of economic growth, producing metals for defence industries, renewable energy and high technology manufacturing,” said Nyrstar Australia Chief Executive Matt Howell. “Through this partnership, Australia is demonstrating that it is at the forefront of taking meaningful steps to retain nationally strategic smelters and partner with industry to provide urgent short-term support, as well as work on solutions for their long-term viability.”

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