The federal government has committed $57.5 million to support the transformation of Nyrstar’s Port Pirie and Hobart smelters into critical minerals facilities as part of a $135 million joint investment with the South Australian and Tasmanian governments.
The funding aims to preserve over 1,400 direct jobs and more than 6,600 indirect jobs while enabling Nyrstar to explore new production opportunities in minerals essential to clean energy, defence and high-tech manufacturing.
Under the package, Nyrstar will fast-track feasibility studies and detailed engineering plans to modernise both smelters.
In Port Pirie, the company will also deploy a pilot plant for antimony — a strategic metal used in semiconductors, ammunition, and flame retardants — positioning the site to become Australia’s sole producer and one of the few globally.
“If pilot studies are successful, this would position Port Pirie as Australia’s only producer of antimony metal,” Minister for Industry and Innovation Tim Ayres said.
The studies will also explore the production of bismuth and tellurium at Port Pirie, and germanium and indium at the Hobart site — minerals increasingly vital to sectors like photovoltaics, fibre optics and specialty alloys.
As part of the investment, Nyrstar will proceed with major maintenance and asset integrity upgrades. These include furnace and wharf works in Hobart, and a large-scale maintenance project in Port Pirie requiring more than 350 contractors and 90 suppliers.
Nyrstar, a subsidiary of global commodities group Trafigura, is Australia’s only lead refiner and its largest zinc refiner, contributing an estimated $1.7 billion to the national economy annually.
South Australian Premier Peter Malinauskas said the deal represents a long-term path forward for Port Pirie’s industrial base.
“The transformation of the smelter into a producer of critical minerals like antimony would put our state at the forefront of a global supply chain that is vital to clean energy, defence, and high-tech manufacturing,” he said.
Tasmanian Premier Jeremy Rockliff said the package would secure more than 500 local jobs and safeguard the Hobart smelter’s future.
The investment is aligned with the federal government’s Future Made in Australia agenda, which includes building out sovereign capacity in strategic industries such as critical minerals processing.
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