Nyrstar management say Hobart’s zinc smelter has sustainable, long-term future

Nyrstar has told the State Government it will be investing in its Hobart smelter despite challenging global conditions.

The Nyrstar zink works on the bank of the River Derwent. Picture: SAM ROSEWARNE

NYRSTAR has told the State Government it will be investing in its Hobart smelter despite challenging global conditions.

Unions hope any money spent will go towards safety improvements, maintenance at the plant and to secure jobs.

Treasurer Peter Gutwein said the CEO and senior management of the Belgian-listed company had outlined plans to continue to invest in the smelter in a briefing on Friday.

“Nyrstar have advised that they are committed to their Hobart operations, that the Hobart smelter is sustainable and that they plan to continue to invest in the site,” Mr Gutwein said.

“This is a very good sign of their commitment to a long-term future for the Hobart smelter.

“We’re aware globally that they are going through a capital restructure process, but their clear advice to us is that the Hobart smelter remains an important part of their business.”

Earlier this month the Government vowed to keep a close eye on operations at the Hobart zinc works after Nyrstar’s share price plummeted and unions raised worker-safety and job-loss concerns.

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Australian Workers’ Union state organiser Kevin Midson told the Mercury he was “very concerned” about the longevity of the plant and safety of employees.

Mr Midson said the union had written to WorkSafe Tasmania last week about 15 safety issues.

He said the union welcomed the news that Nyrstar would be investing in the Hobart smelter and would seek to meet with the company to further understand its future.

Unions claimed earlier this month the company had banned forklifts from operating in one particular room due to unstable flooring and another area had an under-maintained flue system meaning workers were exposed to high levels of fumes and smoke.

Concerns were also raised about a reduction in maintenance staff from 63 employees to 43.

A company spokeswoman said it had already reduced its maintenance workforce by 16 through natural attrition, including transfers and voluntary redundancies.

Nyrstar said the gradual workforce reductions had been carefully planned over the past couple of years and were not connected with recent developments at a corporate level.