Rockliff write to PM seeking urgent taskforce for save Nyrstar smelter

The Premier has penned a letter to the Prime Minister and Opposition leader urgently seeking a plan to secure the future of a smelter that employs hundreds of Tasmanians.

Nyrstar Hobart Smelter.

Premier Jeremy Rockliff has written to Prime Minister Anthony Albanese and Opposition leader Peter Dutton urgently seeking a joint state and federal taskforce to secure the future of Nyrstar’s Australian operations.

The CEO of Nyrstar’s parent company Trafigura, Richard Holtum, has described the company’s Australian operations as “uncompetitive” and they could close or be sold without government support as strategic assets.

The company’s Hobart smelter employs 550 people.

Mr Rockliff said he has written to the Mr Albanese on Thursday seeking to establish “a co-ordinated national response”.

Premier Jeremy Rockliff. Picture: Nikki Davis-Jones

“The Tasmanian Government is providing support in response to the difficult circumstances being encountered by Nyrstar’s Hobart smelter, to help the company through this challenging period. However, we need the Federal Government to take immediate action,” he said.

“We propose establishing a tripartite taskforce comprising the Australian, South Australian and Tasmanian Governments to co-ordinate a national approach, co-investment and strategic support to secure long-term smelting capability, as well as direct engagement with Nyrstar and Trafigura to work constructively together towards a viable and sustainable solution.

“I have today written to Opposition Leader, Peter Dutton, seeking very strong national bipartisan support for the objectives outlined in my letter to the Prime Minister.”

Nyrstar recently announced a 25 per cent cut to production at its 106-year-old Lutana works, which employ 500 people and put a $400m modernisation of its electrolytic cell house on hold.

Leader of the Opposition Peter Dutton. Picture: NewsWire / Martin Ollman

Prime Minister Anthony Albanese. Picture: NewsWire / Martin Ollman

Australian Workers Union organiser Dave Meers said the reports were troubling for the local workforce.

“We are very concerned about these recent developments as are the 550 odd workers who depend on this 100 year old facility to provide for their families,” he said.

“The AWU continues to meet with members on site and with management at the smelter to chart a path forward.

“It hardly needs to be said this facility forms part of the fabric of critical infrastructure which ensures Australia’s sovereign capacity, as we learned during the pandemic, we ignore this at our peril.”

Federal member for Clark Andrew Wilkie spoke to Federal Industry Minister Ed Husic on Thursday to underline the importance of the refinery to the local economy. He has also been in contact with Nyrstar.

“The significance of the unfolding situation at Trafigura must not be underestimated,” he said.

“The Hobart zinc works is a big employer and economic driver, and its closure would be a dreadful blow to the city. While commercial decisions are a matter for the company, now more than ever the Federal and Tasmanian governments must do whatever they reasonably can to support the smelter.”

Dean Winter. Picture: Nikki Davis-Jones

Labor leader Dean Winter said he was troubled by developments.

“I’ve been speaking to Nystar about these issues for a long time now and will be receiving a briefing in the coming days.

“Around this, first thoughts need to be with the workforce who are now under significant stress because there is uncertainty coming from Trafigura’s announcement yesterday.

“We need to do everything we can to make sure that this business is a viable business going forward. That means providing the level of support that it needs.”