More than 1400 jobs saved at smelters after $105m bailout
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More than 1400 jobs have been given a lifeline after federal and state governments have agreed to provide a further $105 million to bail out global mining company Nyrstar.
Nyrstar received $135 million in taxpayer money in August to keep its struggling smelters in South Australia and Tasmania operating, but that government funding expired in May.
Nrystar has smelters in Tasmania and South Australia. iStock
Today, the federal government announced a new funding package alongside the state government’s to help Nyrstar continue operating until the end of the year.
The federal government has contributed $62.5 million of the total $105 million, South Australia has put forward $35 million and Tasmania has paid $7.5 million.
Industry Minister Tim Ayres said the latest round of funding would save jobs and strengthen the country’s production industry.
“We are backing Australian industry and ensuring we maintain the capability to refine and process the minerals the world needs,” he said.
Nyrstar is the only lead refiner and the largest zinc refiner in Australia and has been struggling to compete in the global market since early last year.
The company contributes $1.7 billion to the economy each year and employs about 1400 workers and 6600 contractors.
South Australian Premier Peter Malinauskas said the smelters were vital for Australia. Supplied
South Australian Premier Peter Malinauskas said it was important for the smelter in Port Pirie to keep producing minerals and metals like antimony, which is used for defence applications, for the country’s capabilities.
“It is produced in China. Recently, China introduced an export ban on antimony to other parts of the world, which meant like-minded countries, like Australia and the US, were not able to get access to this critical defence material,” he said.
“By us being able to produce it in Port Pirie, it ensures that we have a sovereign capability in such a product.”
Tasmanian Premier Jeremy Rockliff said the Nyrstar smelter in Hobart contributes $510 million to the local economy each year and is one of the state’s most important companies.
“This investment will help keep power prices the lowest in the nation for Tasmanians and it backs our industrial future, supporting sovereign capability and ensuring Tasmania remains a key part of Australia’s minerals processing supply chain,” he said.
As part of the funding, Nyrstar will undergo a review in the coming months to explain how it will maintain these sites in the long-term.
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