A $105 million government lifeline will keep Hobart’s Nyrstar smelter running through 2026, months after the company warned workers closure was possible.
The federal, Tasmanian and South Australian governments say the package will keep the Hobart and Port Pirie sites operating while Nyrstar weighs up its long-term future.
Federal Industry and Innovation Minister Tim Ayres and Premier Jeremy Rockliff visited the Lutana smelter on Wednesday to make the announcement.
The money will fund a pre-feasibility study and further feasibility work aimed at expanding critical minerals production, including antimony.
Antimony is used in defence, semiconductors, energy and the automotive industry.
The deal replaces a $135 million package struck last year, which expired on May 1.
That earlier round was split $57.5 million from the Commonwealth, $55 million from South Australia and $22.5 million from Tasmania.
The split on the new $105 million has not been detailed.
Rockliff said the Hobart smelter was one of the state’s most significant industrial employers.
“This package helps secure the immediate future of more than 600 direct jobs and over 1,000 indirect jobs that support families, contractors and suppliers across Tasmania,” he said.
“Nyrstar contributes more than $510 million to the Tasmanian economy each year and plays a critical role in sustaining economic activity across the state.”
Ayres said the investment would keep the facilities open while the next phase of work was completed.
“We are backing Australian industry and ensuring we maintain the capability to refine and process the minerals the world needs,” he said.
“This is about securing jobs, strengthening our industrial base and positioning Australia higher up the global value chain.”
Nyrstar global chief executive Guido Janssen said the partnership showed the strategic importance of the company’s Australian operations.
“Advancing these studies is a critical step in finalising the scope of major upgrades needed,” Janssen said.
The support comes after a difficult stretch for the business.
Parent company Trafigura wrote $363 million off its Australian division last year, while a $400 million Hobart modernisation was put on hold in 2024.
Nyrstar will now take part in a joint review with the three governments to map out a long-term path for both sites.
