Talks to save the Nyrstar zinc smelter in Hobart and its sister lead smelter in Port Pirie are dragging on, with a key government funding agreement expiring today.
Treasurer Eric Abetz confirmed negotiations were ongoing but offered little detail on where things stood.
“Negotiations are continuing between the federal and the two state governments, South Australia and Tasmania,” Abetz said.
“Nyrstar is a very important component of our economy and of our supply chains in Tasmania, so we will do what we can to ensure that Nyrstar continues.”
The three governments announced a $135 million rescue package in August last year – $57.5 million from the Commonwealth, $55 million from South Australia and $22.5 million from Tasmania.
That deal was always meant to be followed by a second phase of support, which is now in doubt.
Premier Jeremy Rockliff said Tasmania had “a further seven and a half million dollars on the table”, taking the state’s total contribution over the past 12 months to about $30 million.
Rockliff said he met with the federal minister and South Australian premier Peter Malinauskas on Thursday evening to work through the package.
He said it was “vital that the federal government do take a leadership role here”, while describing the three governments as working cooperatively.
Rockliff would not be drawn on suggestions the next phase of funding could be a fortnight away, saying only that he wanted to resolve matters as soon as possible.
He also declined to confirm how much the company was seeking to cover workforce costs during a proposed two-year feasibility study.
Independent Clark MP Andrew Wilkie said he was “deeply concerned” the package was in jeopardy.
“The Hobart zinc works employs around 500 local workers and supports numerous contractors and suppliers across the state,” Wilkie said.
“Workers and their families are left sweating about their future.”
Wilkie said all four parties needed to sort out any disagreements urgently.
Nyrstar is Australia’s only lead refiner and its largest zinc refiner.
The company contributes about $1.7 billion to the economy each year and directly employs 1400 people across both sites.
Asked which party was holding things up, Abetz refused to say.
“Finger-pointing on occasions such as this is never helpful,” he said.
