Nyrstar’s Hobart zinc works will slash its production by 25% starting next month “until further notice”.
The zinc smelter is billed by Nyrstar as one of the world’s largest, with a capacity of about 260,000 metric tons a year.
The decision comes following a “thorough and extensive review” of the plant’s performance.
Nyrstar Australia has determined the reduction necessary in response to “deteriorating market conditions” and continuing “financial losses”.
The refinery has been facing mounting challenges from weakening raw material markets, negative treatment charges and escalating operational costs.
Hobart General Manager Todd Milne said there are no immediate job cuts planned.
“We remain optimistic about the future and have the flexibility to lift production levels when operating conditions improve,” he said.
“The duration of the production decrease will depend on future markets and operating conditions.”
The production cutback will be phased in gradually from April 1.
