Nyrstar smelter on edge as SA Premier takes government ministers to Port Pirie meeting

Port Pirie residents are anxiously awaiting a taxpayer-funded support package to keep the town's struggling smelter operating.

Nyrstar lead smelter at Port Pirie. Picture: Supplied

State ministers are holding a public meeting in embattled Port Pirie on Monday night as locals hold out for an “urgent” $45m government funding bail out for their local smelter owner Nyrstar.

The town’s future is teetering on the financial edge as state and federal government discussions continued with the 130-year-old smelter’s owner Nyrstar over a taxpayer-funded support package.

Port Pirie Mayor Leon Stephens said the government was remaining “tight lipped” about the company’s future but the “dial is moving” and the community hoped to hear more about funding support for the smelter that could help solve ongoing issues like air quality.

He said Nyrstar was not “doing a Gupta” in Whyalla and was giving a good directive about where support was most needed for the smelter that employed some 900 locals and generated $160m in local investment.

Port Pirie Mayor Leon Stephens has raised fears for his town over Nyrstar’s future. Picture: Dean Martin

Premier Peter Malinauskas would hold a Cabinet meeting in Port Augusta on Monday and then a town meeting at the Port Pirie Sports Precinct that night.

Nyrstar was not currently planning to have an official spokesperson at the Port Pirie public meeting but a company spokesperson confirmed discussions with the SA, Tasmanian and federal governments were ongoing and “that sentiment for urgency remains”.

News emerged earlier this month that Nyrstar’s parent company Trafigura was undertaking a

Matt Howell is the CEO of Nyrstar Australia

review of its holdings in SA and Tasmania.

It wanted to spend more than $400m on retrofitting its Port Pirie site to produce critical metals used in defence, renewables and other emerging industries.

Nyrstar Australia chief Matt Howell told The Advertiser the company was asking for $45m for a two-year feasibility study and to support maintenance work to keep the Port Pirie smelter operating over that time.

Opposition leader Vincent Tarzia has “grave concerns about the future of the Nyrstar lead smelter” and the time lag in coming up with a solution for the region and its 18,000 residents.

“We have been in frequent contact with the company and community leaders, and understand the anxiety at the lack of action by the state Labor government,” he said.

“While Labor urgently funds Whyalla, the Nyrstar lead smelter at Port Pirie teeters on the brink without the same urgency or level of support from the Federal or State governments.”

Mr Tarzia raised concerns about the state budget after the State government last week announced a $15m support package for Bedford Group to prevent the disability not-for-profit employer from being forced to enter voluntary administration.

A state cabinet meeting also was held on Yorke Peninsula earlier this week where the Premier met locals impacted by the toxic algal bloom and discussed the federal and state government’s joint $28m support package.

A government spokeperson said China was making a “strategic play to upend critical mineral supply worldwide by intervening in the smelter market”.

He said this was affecting all Australian states and could have “potentially catastrophic consequences for smelting”.

“We have a decision to make as a country - do we want to be part of the growing and important critical minerals industry?”

Adding that the government was speaking regularly with Nyrstar’s parent company Trafigura.

Originally published as Nyrstar smelter on edge as SA Premier takes government ministers to Port Pirie meeting