The head of Australian smelting business Nyrstar said he was optimistic about the future of two plants in Tasmania and South Australia after Prime Minister Anthony Albanese said the federal government was close to finalising a taxpayer-funded lifeline for the loss-making smelters.

Matt Howell, chief executive of Nyrstar Australia, said while discussions were continuing on the package – which could prevent a closure decision threatened by Nyrstar’s Swiss parent within weeks – comments by Albanese and Industry Minister Tim Ayres were “very encouraging”.