$43m payment made on taxpayer loan which unlocked Nyrstar smelter development in Port Pirie, sparking new hope for deal

After missing an earlier deadline, Nyrstar has now paid $43 million towards its taxpayer-backed loan, a step Treasurer Rob Lucas says proves it’s “acting in good faith”.

• Nyrstar to make $43m payment towards $291.25m loan

Shareholders in the Port Pirie smelter have confirmed delivery of a $43 million payment on a taxpayer-backed loan, sparking new State Government hope that a deal will be struck to remove concern about its future operation.

Former premier Jay Weatherill signed off on a $291 million taxpayer guarantee for the smelter’s rebuild as part of a deal with local independent MP Geoff Brock in 2014 that secured a minority Labor state government.

Premier Steven Marshall and Treasurer Rob Lucas on Monday met with the global chairman and chief executive of Nyrstar’s largest shareholder Trafigura, Jeremy Weir, who will on Tuesday visit Port Pirie.

Mr Lucas said Mr Weir confirmed payment of $43 million from Nyrstar Port Pirie towards the taxpayer-guaranteed loan.

Mr Lucas said the payment was a sign that the company was “acting in good faith”, ahead of the implementation of a Nyrstar capital restructure aimed at overcoming recent debt issues overseas.

The Nyrstar smelter at Port Pirie. Picture: Karen Seindanis

Trafigura is a global commodity trading company and has entered into a restructuring arrangement that may lead to it becoming the majority owner of the Port Pirie smelter.

Mr Lucas said it was his and Mr Marshall’s first face-to-face meeting with Mr Weir and discussions “were both productive and positive’’.

“Mr Weir reaffirmed the critical importance of the Port Pirie smelter to Nyrstar’s ongoing operations and that he saw it as a long-term investment,” Mr Lucas said.

“While negotiations about the restructuring arrangement have not yet concluded, they are proceeding productively and we are hopeful they will be successfully resolved in the near future.”

The Advertiser reported earlier this month that the payment was expected, after Nyrstar had failed to meet earlier deadlines.