Nyrstar boss makes impassioned plea as 560 smelter workers’ future remains in the balance

As the future of Nyrstar’s Hobart zinc smelter hangs in the balance with workers anxious about their future, the company says it holds the key to the production of critical metals for future generations.

Matt Howell is the CEO of Nyrstar Australia

As the future of Nyrstar’s Hobart zinc smelter hangs in the balance with workers anxious about their future, the company says it holds the key to the production of critical metals for future generations.

The Australian Workers Union hopes the federal and state governments will offer the company a financial lifeline to secure the jobs of its largely young workforce.

Nyrstar Australia CEO Matt Howell has made an impassioned plea for support for the 107-year-old smelter which employees 560 workers and last year contributed more than $500m in economic value to the state.

“This isn’t just about saving a smelter,” he said.

“It’s about building a sovereign capability for Australia, ensuring the metals we need for modern economies are available, and in doing so creating new opportunities for future Tasmanians.

“Our goal is to put Hobart at the forefront of a growing global industry.

“With collaboration, vision and commitment we can secure this once-in-a-generation opportunity, underpin a new era of local employment and ensure that Hobart’s smelter and the communities that depend on it continue not just to survive, but to thrive.”

Aerial shot of Nyrstar Hobart zinc works at Lutana. Picture: Supplied

In a Talking Point in today’s Mercury, Mr Howell says global challenges are putting pressure on Nyrstar and without support “could risk the long-term viability of our nation’s domestic processing capacity”.

He suggests Hobart could become a centre of excellence for the production of critical metals.

“We have the opportunity to supply products like germanium and indium that are essential to modern life,” Mr Howell said.

“While our zinc has been used in protecting the corrosion of infrastructure, in pharmaceuticals essential for healthy lives and in renewable energy technology, Hobart could become integral in the production of the technologies we deem essential for the next generation.”

Nyrstar continues to hold discussions with governments on the funding needed to upgrade both the Hobart smelter and its Port Pirie plant in South Australia.

Prime Minister Anthony Albanese is expected to visit Tasmania this week but sources say it is unlikely he will make any funding announcement for Nyrstar.

Zinc stack at the Nyrstar smelter in Hobart. Picture: Supplied

Since 2019, the company has been majority owned by global commodity trader Trafigura.

It is believed to be losing millions at its Hobart and Port Pirie plants and needs hundreds of millions of dollars to upgrade.

The cell room in Hobart is 100 years old.

Australian Workers Union assistant secretary Robert Flanagan said he hoped the federal government would support Nyrstar which was having “real and legitimate problems”.

“We don’t know what support they will be able to provide and both plants depend on each other and are not profitable in their current state,” he said.

“One of our concerns is that Nyrstar has very publicly flagged that time is of the essence but we know that governments are notorious for moving very slowly.

“I accept that they have a responsibility with taxpayers’ money but the cost to Tasmania of not providing support to Nyrstar will probably be greater than helping them.

“The workers are very anxious, they know their livelihoods are at stake.

“It is a young workforce and they are looking for a long term secure future.”

Read Nyrstar CEO Matt Howell’s Talking Point on Page 17.