Nyrstar could make $20m smelter loan payment early next year under proposed Government deal

Nyrstar would make a $20 million payment towards its Port Pirie smelter loan under a deal that could be struck with the State Government early next year, Treasurer Rob Lucas says.

• Nyrstar deal could be struck ‘within weeks’
• Nyrstar financial crisis could hit SA taxpayers with $291m bill
• 120 job losses confirmed at Port Pirie smelter
• Analysis: Sanjeev Gupta would be natural buyer for smelter

Nyrstar would make a $20 million payment towards its Port Pirie smelter loan under a deal that could be struck with the State Government early next year, Treasurer Rob Lucas says.

Mr Lucas said a second day of discussions with Nyrstar chief executive Hilmar Rode had been “productive” and the metals giant would make a $10 million interest type payment to the financiers of its Port Pirie smelter upgrade.

South Australian taxpayers underwrote the loan and would be on the hook for $291.25 million if Nyrstar was to collapse.

The $20 million payment towards the principal amount would be the first of its kind received by Nyrstar’s financiers after it missed deadlines in May and this month.

Mr Lucas said there was still “much more work to be done” to secure an agreement to compel Nyrstar to make payments by set dates.

“The Government and Nyrstar will hold ongoing discussions, targeting a mutually-binding agreement within the first quarter of next year,” Mr Lucas said.

Nyrstar CEO Hilmar Rode meets Treasurer Rob Lucas at the State Administration Centre.

If a mutually-binding agreement can be finalised, subject to approval by Cabinet and Nyrstar’s board, the company has agreed to then make a payment of $20 million on the outstanding principal.”

Nyrstar’s global share price slumped again in the European markets on Monday, falling 59 Euro cents, to 77 Euro cents.

A huge slump in Nyrstar’s share price in recent weeks to a low of 40 Euro cents last week prompted Mr Lucas to say he was “very worried” about its financial position. The company also confirmed last week 120 jobs would be lost at the Port Pirie smelter next year. Mr Rode will visit smelter employees today.