One of Australia’s two zinc refinery operators has crashed to a $US37.1 million ($56.8 million) loss in the latest challenge this year to the federal government’s hopes of expanding local mineral processing.

The loss posted by Korea Zinc’s Sun Metals Holdings refinery near Townsville adds to the financial pain being felt by Australian manufacturers of aluminium, nickel, manganese, lithium and copper, as a global trend for low smelting and refining fees collides with Australia’s rising energy costs.