Sanjeev Gupta not commenting as Nyrstar flags plans to cut 120 job cuts at Port Pirie smelter

The white knight of Whyalla is not commenting amid concerns about the future of the Nyrstar smelter in Port Pirie.

Nyrstar’s zinc works in Hobart. Picture: Julia Santos

British Industrialist Sanjeev Gupta has confirmed his group’s interest in developing its own smelting operations in South Australia but has declined to comment on possibly working with the troubled Nyrstar operations at Port Pirie. Mr Gupta, who rescued the Whyalla steelworks, says he already has a team examining the development of a copper smelter in the region. But on the question of Nyrstar, he’s told ABC radio that he has a policy of not commenting on speculation and issues that “shouldn’t really be talked about in public unless they become reality”.

Concerns are growing for the future of the Nyrstar smelter with the company announcing plans to cut about 120 jobs in 2019.

It says the cuts will be achieved across production, operation and maintenance roles and also include the closure of the sinter plant by the end of next year. “We will achieve the majority of these changes through natural attrition, a change in the scope of work undertaken by some roles, redeployment of some people to different roles and by not extending a number of the limited tenure employee contracts,” Nyrstar said in a statement.

The company said it remained committed to a sustainable future for its Port Pire smelter and would continue to look at opportunities to further optimise the plant.

It recently completed a $660 million redevelopment to cut pollution and enhance the viability of the operations.

The previous state Labor government underwrote $291m of the upgrade, and in May this year, Liberal government Treasurer Rob Lucas said Nyrstar would defer payments to its international financiers by 18 months until November 2019, something the treasurer described as surprising.

Since then the company has been hit by a falling share price further raising concerns ahead of a meeting between Mr Lucas and chief executive Hilmar Rode next week.

Mr Gupta said South Australia was “very dear in my heart” so he would always look to do more.

“Anything in South Australia, especially anything in and around Whyalla, I’m very keen on working on,” he said.

“I’d be very happy to look at other things as well.”

AAP