Workers at Tasmania’s Nyrstar zinc smelter are breathing a sigh of relief after three levels of government unveiled a $135 million rescue package to keep the facility open.
The bailout secures more than 500 jobs at the Hobart plant, along with hundreds more at the company’s Port Pirie operation in South Australia.
Nyrstar Hobart general manager Todd Milne said the announcement ends months of uncertainty for employees and their families.
“Yesterday, there were some very happy faces around here,” he said.
“There’s obviously been some uncertainty amongst the workforce, but I’ve got to say, they are a resilient bunch.”
Under the deal, the Tasmanian government will contribute $22.5 million, with the federal and South Australian governments covering the rest.
The funding prevents the closure of facilities that have been part of the industry for generations and remain critical to Australia’s metals processing sector.
Premier Jeremy Rockliff said the announcement brought “enormous relief” to workers and the wider Tasmanian economy.
“We’re standing here, not talking about the closure of Nyrstar and the loss of over 500 jobs, but the securing of 500 jobs and the future of this well-known, much-loved and essential economic infrastructure,” he said.
The Hobart smelter employs around 500 people and works with about 300 local businesses. Across Australia, Nyrstar employs 1,400 workers.
Minister Eric Abetz described the intervention as a “Team Australia” approach between the Labor federal and South Australian governments and the Liberal Tasmanian government.
The bailout follows months of financial pressure on the company, with Milne pointing to “unprecedented poor terms” on raw materials.
“We’re really operating in a skewed market at the moment. It’s not a level playing field,” Milne said.
The funding will keep operations running and support future development in critical minerals extraction, including germanium and indium in Hobart and antimony in Port Pirie.
