Nyrstar to decide on future of Hobart zinc works in coming weeks after plea for help

In its 107 years of operation Hobart’s zinc works has employed thousands of Tasmanians. Read about why its future is in jeopardy.

Nyrstar Hobart Smelter.

The future of Nyrstar’s Hobart zinc smelter and its 550 workers could be known in weeks.

Along with its Port Pirie smelter in South Australia, the future of the 107-year-old zinc works at Lutana has been under a cloud.

It is believed the company needs hundreds of millions of dollars to upgrade.

A Nyrstar spokesman confirmed the company was seeking government help to stay open.

“Nyrstar is seeking transitional support to allow it to pursue further project design and costing to allow it to modernise its operations in Australia and develop a new critical metals production capability,” he said.

AWU Tasmanian Branch Secretary Robert Flanagan. Picture: Chris Kidd

“The company is engaging with both state and federal Governments and is seeking to finalise a direction on its future in coming weeks.”

Premier Jeremy Rockliff said he had been in contact with Prime Minister Anthony Albanese “and stated our willingness to work together to secure the operations of Nyrstar in Hobart”.

“However, I have made it clear that it needs to be a coordinated and joint response with the Federal Government and South Australia,” he said.

“Our focus continues to be on securing the hundreds of jobs at Nyrstar, the thousands of indirect jobs, and the significant economic and community benefits it delivers for Tasmania.”

Australian Workers Union assistant branch secretary Robert Flanagan said workers were “very worried” about the smelter’s future.

“It’s their livelihoods,” he said.

“Where would they go? It is 500 workers directly and many more indirect jobs as well as Impact Fertilisers and what does that do for the rest of the Tasmanian economy?

“If the Hobart smelter collapses it is not an outcome the Tasmanian community can afford.

“It is a key pillar of our private sector economy.”

Mr Flanagan said it was no surprise the Hobart smelter and Nystar’s Port Pirie operations were struggling due to “subsidised Chinese products” and that government financial support was needed.

“One (smelter) cannot survive without the other,” he said.

He said the Hobart smelter’s cell room was 100 years ago and the cost of rebuilding it would be up to $400m.

“The plans were put on hold six months ago and production was dropped 25 per cent.

“There’s been peaks and troughs but we’ve never seen a drop in production.”

Tasmanian Minerals, Manufacturing and Energy Council CEO Ray Mostogl said Nyrstar had made it clear they “were in trouble”.

TMEC CEO Ray Mostogl. Picture: Chris Kidd

He understood the company needed $45m in the next couple of years which was critical to their continued operations and producing other critical minerals.

Mr Mostogl accused China of “manipulating the market” in much the same way as they had done previously forcing the closure of Tasmania’s Avebury nickel mine which closed last year.

“So this is the Avebury mine playbook all over again. It closed because China manipulated the market in Indonesia, flooded the market with nickel, (and) killed the whole Australian nickel industry,” he said.

“This is unfortunately about China eliminating the competition and then being able to dominate the market and have that control over these critical metals and we just can’t let that happen again.

“Effectively, it’s Australia’s only real ability to process critical minerals at the moment.

“The alternative of buying metal from a single country in the future is worse than bailing that out now.”

Labor leader Dean Winter said he had spoken to federal minister Tim Ayres on Saturday and was determined to work with the federal government to protect Tasmanian manufacturing jobs.

“There is major pressure on Tasmania’s major industrials due to several factors. One of those is skyrocketing transmission prices overseen by Liberals,” he said. “We are backing our major industrials while the government sends power prices through the roof.”

A report released last month commissioned by Nyrstar found that safeguarding domestic lead and zinc processing capability was in Australia’s economic and strategic interests.

Originally published as Nyrstar to decide on future of Hobart zinc works in coming weeks after plea for help