Australia unveils fresh A$105m bailout for Nyrstar zinc smelters

Australia's federal, Tasmanian and South Australian governments have unveiled a joint A$105 million package to support Nyrstar's smelters after Belgian owner Trafigura warned of possible closure. The Commonwealth will contribute A$60 million, with A$25 million from Tasmania and A$20 million from South Australia. Industry Minister Ed Husic stressed the goal of protecting the country's critical-minerals processing capacity.

The package funds feasibility studies for modernising and expanding the Hobart zinc smelter and the Port Pirie lead smelter. Nyrstar's Asia-Pacific regional president Matt Howell said the studies were targeted for completion within 12 months. Tasmanian Premier Jeremy Rockliff said the announcement secured more than 1,000 direct jobs.

The Australian Council of Trade Unions welcomed the decision while asking for clarity on the timetable for the membership-protection plan. Trafigura reiterated that the fall in global zinc prices and high energy costs are squeezing the plants' profitability. Zinc futures on the London Metal Exchange posted a modest positive move after the announcement. This is not investment advice.