Nyrstar Australia has secured $135 million in transitionary funding from the Australian, South Australian, and Tasmanian Governments. The package will support its multi-metals manufacturing business and fast-track feasibility studies for critical metals production.
The investment will support essential infrastructure upgrades at the Hobart smelter, which employs over 500 Tasmanians and injects over $500 million annually into the local economy.
Media release – Nyrstar Australia, 5 August 2025
TRANSITIONARY FUNDING SECURED FOR NYRSTAR AUSTRALIA’S CRITICAL METALS PROCESSING
International producer of critical and strategic metals Nyrstar, today announced it had reached agreement with the Australian, South Australian and Tasmanian Governments for $135 million transitionary support for its domestic multi-metals manufacturing business and sites at Port Pirie and Hobart.
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 semi-conductors found in electronics and defence applications and is 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 State 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,” Janssen said.
“This announcement is a credit to the teamwork and excellence of our teams at Port Pirie and Hobart and is an important step forward as part of our global focus on increasing critical and strategic metals production.”
Nyrstar Australia Chief Executive Matt Howell said that Nyrstar’s operations in Australia have the potential to build on their 100 years of continuous operation, becoming a new hub for the supply of critical metals not only to Australia but globally.
“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,” Howell said.
“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.”
As Australia’s only lead refiner and the largest zinc refiner in the country Nyrstar contributes around A$1.7bn to Australia’s economy each year and employs 1,400 Australians directly, while supporting more than 6,600 indirect jobs.
During this first stage of support major investments at both sites will be completed requiring an additional 350 contractors and 90 suppliers at Port Pirie and around 200 contractors and suppliers for works at Hobart.
About Nyrstar
Nyrstar is an international producer of critical minerals and metals essential for a low carbon future with mining, smelting and other operations located in Europe, the United States and Australia. Nyrstar’s operating business is wholly owned by Trafigura, one of the world’s leading independent commodity trading and supply chain logistics companies.
Nyrstar Australia is a national multi-metals processing and refining business, operating in Port Pirie and Hobart for over 100 years to produce lead, silver, zinc, and many other materials that are essential for the manufacture of products used by everyone, every day.
Nyrstar Australia employs over 1,400 people across processing plants in Port Pirie and Hobart that operate as two interlinked sites and play a critical role in increasing the value of the metals and minerals obtained from resources sourced from across Australia and around the world.
Media release – Jeremy Rockliff, Premier and Eric Abetz, Minister for Business, Industry and Resources, 5 August 2025
Tasmanian Government support secures future for Nyrstar Hobart
The Tasmanian Government will secure the future of Nyrstar’s Hobart operations with a $22.5m investment to protect the more than 500 local jobs at one of the State’s most significant employers.
Premier Jeremy Rockliff said the support package backs Tasmanian workers and their families.
The funding will be provided through a combination of existing support streams already allocated to the company, including its Electrolytic Cellhouse upgrade, and new support streams.
“We’ve worked closely with Nyrstar and Trafigura over recent months to secure a path forward, and today we’re delivering,” Rockliff said.
“This package will help keep the Hobart smelter operating, delivering significant investment in maintenance and upgrades to keep the site strong and safe.
“As part of the agreement, Nyrstar will undertake major investment works at the Hobart site, requiring the engagement of around 200 additional contractors and suppliers.
“We’re backing industry, backing Australia’s sovereign capability and backing the workers who underpin our State’s economy.”
It forms part of a broader $135 million national package to support Nyrstar’s Australian operations during a nine-month transitional phase.
Minister for Business, Industry and Resources, Eric Abetz, said the support for Nyrstar reflected the strategic importance of Tasmania’s minerals processing sector.
“The Hobart site is a key part of Australia’s critical minerals supply chain, processing zinc sourced from Rosebery on the West Coast and right across the country,” Abetz said.
Nyrstar contributes more than $1.7 billion to the national economy each year, employing around 1,400 people directly and supporting over 6,600 indirect jobs across the country.
Media release – Andrew Wilkie MP, Independent Member for Clark, 5 August 2025
STATEMENT REGARDING NYSTAR SUPPORT PACKAGE
“Today’s announcement of a Nystar support package, by Industry Minister Senator Tim Ayres, is obviously good news. The zinc works employs hundreds of workers and supports numerous contractors and suppliers, all of whom would have been hit hard if the plant had shut down.
The knock-on effect in the Hobart and broader Tasmanian economy would have been severe.” Independent Member for Clark Andrew Wilkie says.
“The survival of the zinc works, along with other facilities like Liberty Bell Bay, Mount Isa and Whyalla, is also central to Australia’s economic future and national security. Now, more than ever, Australia needs to focus on maintaining and building on the country’s processing and manufacturing capacity, and also to develop more robust supply chains. When it comes to critical minerals and rare earth minerals in particular, Australia is remarkably well positioned to be a globally important supplier.
“I have been in regular contact with Nystar and Senator Ayres, including as recently as this morning. I am confident that the Federal Government well understands the situation, and is being careful to try and find a balance between reasonable government intervention, and the inherent corporate responsibility to pay to address their own challenges.”
Media release – Tasmanian Chamber of Commerce and Industry, 5 August 2025
TCCI welcomes vital support package for Nyrstar and Tasmanian industry
The Tasmanian Chamber of Commerce and Industry (TCCI) has welcomed the joint $135 million support package from the Federal, Tasmanian and South Australian Governments to help secure the future of Nyrstar’s operations in Hobart and Port Pirie.
TCCI CEO Michael Bailey said the announcement is a critical step toward securing Tasmania’s industrial future, protecting hundreds of local jobs, and boosting Australia’s sovereign capability in critical minerals.
“This is exactly the kind of leadership and collaboration Tasmania needs,” Bailey said.
“Today’s announcement is not just about Nyrstar, it’s about backing a sector that supports thousands of Tasmanians and underpins our economic resilience.”
Nyrstar’s Hobart smelter employs more than 500 Tasmanians and injects over $500 million annually into the local economy.
The investment will support essential infrastructure upgrades and explore how Nyrstar can continue to produce critical minerals used in advanced manufacturing, defence, clean energy and high-tech sectors.
“This package provides a pathway for Nyrstar to modernise its operations and explore new opportunities in critical minerals, which are vital for future industries,” Bailey said.
“It’s a step in the right direction but more will need to be done to ensure Tasmania’s industrial base is competitive, resilient and supported over the long term.
“Tasmania’s major industries have carried our economy for decades. Now is the time to ensure they have the backing needed to transition, grow and continue delivering for the State and the nation.”
Media release – Dean Winter MP, Labor Leader, 5 August 2025
Nyrstar support package welcomed
Tasmanian Labor stands for safe, secure and well-paid jobs and we welcome the joint Federal-State package to support Nyrstar’s Hobart operations.
The package is in line with the announcement I made during the state election, when I made it clear that I would provide my full support should any agreement need to be finalised during the caretaker period.
Nyrstar supports 500 jobs. The cost of not supporting it was always going to be greater to Tasmania than the cost of supporting it, and I am pleased with the outcome.
The focus must now turn to Nyrstar’s long-term future, and it’s critical Tasmania’s next government respects the value of Nyrstar, and all major industrials in Tasmania.
Media release – Dean Winter MP, Labor Leader, 28 July 2025
Nyrstar workers and their families need certainty
Labor stands for safe, secure, well-paid jobs.
The future of Nyrstar and its more than 500 workers is a matter of urgent local and national importance. As Tasmania remains in the caretaker period, Labor is offering its full support for any agreement that needs to be made to safeguard those jobs and the broader economic future of our state.
Nyrstar is a major employer and an economic pillar for Hobart and the wider Tasmanian economy. A failure to act now would risk hundreds of direct jobs and many more through flow-on effects to other businesses.
Despite the fact votes are still being counted, and the final makeup of the next Parliament remains uncertain – the workers at Nyrstar and their families deserve certainty.
Swift and decisive action is needed regardless of what the next government looks like. Labor stands ready to work constructively with the Liberals during this caretaker period, the Federal Government, the company, and the unions to ensure Nyrstar’s future is secure.
Whoever forms the next government will need to stand up for jobs, protect industries, and take responsibility for the challenges facing Tasmania
Media release – Australian Workers’ Union, 5 August 2025
Nyrstar rescue package a welcome relief, now time to develop strategic approach
The joint rescue package to secure ongoing operations at Nystar’s Port Pirie and Hobart smelters has been welcomed by the Australian Workers’ Union, with the AWU now calling for a national strategy to more smoothly manage the retention of Australia’s sovereign capability in manufacturing metals.
After months of uncertainty, AWU National Secretary Paul Farrow said the announcement will come as a relief to workers.
“Our members in Port Pirie and Hobart are critical to maintaining Australia’s sovereign capability, and yet they have endured months of anxiety about the future of their jobs,” Farrow said.
“Finally, these workers and their families have relief. Whole communities were staring down the barrel of disaster and they have been pulled back from the brink. Thankfully, on this occasion, we have seen decisive and far-sighted government action.
“To lose Nyrstar would have constituted a national catastrophe. Nyrstar’s operations can and should be the foundation upon which to build a booming critical minerals sector.
This rescue package shores those foundations up. Direct investment in an Antimony Pilot Plant will give Nystar the cutting edge as a producer of critical minerals.”
Farrow noted that while disaster had been averted in this instance, the government needed a more structured approach to industry support going forward.
“We cannot have a Future Made in Australia, and we cannot assert our sovereignty as a nation, without the capacity to refine metals and critical minerals. So if the government believes we should keep that sovereign capability, then we need to develop a better approach than playing whack-a-mole every time there’s a crisis,” Farrow said.
“China is spending more on propping up its manufacturing sector than it spends on defence. Either we let them undercut our operations into oblivion, or we step up with a strategic national approach.
“We need to develop a long-term, national strategy to retain our smelters so they can thrive in the future when we get our act together on energy costs.
“A cornerstone of this strategy needs to be an east coast gas reservation so we can provide abundant, affordable Australian gas to industries that need it. The best time to start this was a decade ago when we were calling for it – the second best time is now.”
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