The Australian government will provide a further A$105-million ($73.68-million) to support Nyrstar Australia in progressing modernization studies at its South Australian and Tasmanian smelting operations, the industry minister said on Wednesday.
The support is in addition to the previous amount of A$135-million ($87.4 million) announced in August last year, as part of Australia’s strategy to become a key supplier of critical minerals to Western allies.
The funding will support Nyrstar, a unit of the trader Trafigura, in maintaining operations at both smelters in 2026, while it completes studies to produce critical minerals. It previously said it would look at producing germanium and indium in Hobart, in the country’s south, and antimony and bismuth from Port Pirie in South Australia.
“The move highlights ongoing pressure on global smelters from high costs and weak processing fees, while underscoring the strategic importance of maintaining domestic metals processing capacity,” BMO analysts said in a note Wednesday.
Nyrstar shipped its first antimony earlier this year.
Australia’s metal smelters have been under strain owing to high power and labour costs, and cheaper rivals elsewhere.
Modernizing the country’s ageing fleet will require significantly more capital, potentially testing the resolve of the government and taxpayers.
($1 = 1.4251 Australian dollars)
(Reporting by Melanie Burton; Editing by Rashmi Aich)
