Nyrstar gets $135m bailout from federal, state governments

The metal producer Nyrstar will get a $135m bailout from a coalition of the federal government and the governments of South Australia and Tasmania, which will support the company’s Port Pirie facility in SA.

Nyrstar said in June its lead smelter in Port Pirie was losing tens of millions of dollars a month, saying the future of its zinc smelter in Hobart was linked to the success of the one in SA. It called on urgent government intervention, the ABC reported at the time.

The federal government will kick in $57.5m, South Australia $55m and Tasmania $22.5m, the SA premier, Peter Malinauskas, said in a news conference:

This $55 million contribution from the South Australian government is part of a $135 million package that’s all about setting up Port Pirie for a more prosperous future. We know there is a journey in front of us to be able to tackle the challenges we see, particularly coming out of China. But we should be upfront and honest about them.

A smelter owned by Nyrstar
The Nyrstar smelter in Port Pirie, SA. Photograph: David Mariuz/AAP
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Independent Tasmanian MP Andrew Wilkie has welcomed a joint support package for the metal producer Nystar, warning a knock-on effect in the Tasmanian economy would have been “severe” without intervention.

Nyrstar will get a $135m bailout from a coalition of the federal government and the governments of South Australia and Tasmania, which will support the company’s Port Pirie facility in SA.

Wilkie said today’s announcement was “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.

The survival of the zinc works … 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.

Walkie said he had been in regular contact with Nystar and the industry minister, Senator Tim Ayres and was “confident” the federal government well understood the situation.





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