Critical minerals ‘transformation’ across two key smelters ‘a boost for sovereign capacity’
A bailout of two smelters in two states, with bipartisan support, promises to ‘transform’ the nation’s critical minerals capacity.
Australia will develop new sovereign capacity in critical mineral production, under a $135m bailout of two key Nyrstar smelters in two states.
The rescue package for Nyrstar’s Hobart zinc and Port Pirie lead smelters, revealed exclusively in The Australian last month, secures 1400 jobs and could create hundreds more.
A rare bipartisan, multi-jurisdiction plan, confirmed on Tuesday, will see critical minerals antimony and bismuth produced at Port Pirie, South Australia, and germanium and indium in Hobart.
These minerals are critical in the production of key products for defence, clean energy, transport, advanced manufacturing and technology.
“Through this transformation, Nyrstar aims to explore possible production of antimony, bismuth, tellurium, germanium and indium – minerals vital to clean energy, defence and hi-tech sectors,” federal Industry Minister Tim Ayres said.
“An antimony pilot plant will be deployed in Port Pirie as a priority … This would position Port Pirie as Australia’s only producer of antimony metal and one of the few globally, supporting sovereign capability in defence and advanced manufacturing.”
Federal taxpayers will contribute $57.5m to the package, the Labor South Australian government $55m and the Tasmanian Liberal caretaker government – with state Labor support – $22.5m.
As well as the critical mineral projects, the funding – a mix of new and pre-committed money – will help finance a major maintenance project at Port Pirie and major furnace and wharf upgrades in Hobart.
SA Premier Peter Malinauskas hailed the outcome, which follows Nyrstar’s claims of market sabotage by Chinese-subsidised industry, as “an opportunity to transform the Port Pirie smelter and secure its future for the long term”.
“We can modernise the Port Pirie smelter and take advantage of the world’s desire for critical minerals,” Mr Malinauskas said.
“The Port Pirie operations have faced challenges from global forces largely beyond its control. But the transformation of the smelter into a producer of critical minerals like antimony would put our state at the forefront of a global supply chain that is vital to clean energy, defence and hi-tech manufacturing.”
Nyrstar Australia chief executive Matt Howell said the company’s operations in this country had a century of history and could now become “a new hub for the supply of critical metals – not only to Australia but globally”.
“Port Pirie and Hobart represent a key part of Australia’s metals processing infrastructure,” Mr Howell said. “We have an opportunity to build upon this to create a new source of economic growth, producing metals for defence industries, renewable energy and high-technology manufacturing.
“Through this partnership, Australia is demonstrating that it is at the forefront of taking meaningful steps to retain nationally strategic smelters and partner with industry to provide urgent short-term support, as well as work on solutions for their long-term viability.”
As Australia’s only lead refiner and the largest zinc refiner, Nyrstar contributed about $1.7bn to the economy each year, he said.
The first stage of the package would require an additional 350 contractors and 90 suppliers at Port Pirie, and about 200 in Hobart.
While welcoming the support, the Australian Workers’ Union called for a broader national smelter strategy to provide longer-term sustainability across the metals industry.
Coalition industry spokesman Alex Hawke said the bailout “ignored deeper challenges with Australian industry”.
“High energy costs and stifling regulation must be addressed to improve productivity and boost competitiveness,” he said.
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