Nyrstar to Review Australia Zinc and Lead Smelters Amid Market Pressures

Nyrstar

Nyrstar faces operational strain at Hobart and Port Pirie smelters, seeks state support to maintain production viability.

Zinc and Lead Operations Under Pressure

Nyrstar, owned by global commodity trader Trafigura, will review its zinc and lead smelting facilities in Australia. The company cited adverse market conditions and operational challenges in Hobart and Port Pirie as the key reasons. Nyrstar is urging government support to sustain operations in Tasmania and South Australia.

The Hobart zinc smelter, with a 280,000 t/yr capacity, will reduce output by 25% starting April 2024. This comes after the 2024 benchmark zinc treatment charge dropped by 40% to $165/t, a level that may fall further.

Policy Support and Industry Tensions Grow

Meanwhile, the federal Labor government is ramping up support for low-emissions metal processing. It has pledged A$2bn ($1.26bn) in production credits to help aluminium smelters transition to renewable power. Despite this, other smelters like Port Pirie — with a 160,000 t/yr lead capacity — still face uncertainty.

In South Australia, the Whyalla steelworks entered administration last month, prompting A$2.3bn in state and federal backing. As market volatility and energy costs climb, metals producers are increasingly reliant on strategic policy intervention.

The Metalnomist Commentary

Nyrstar’s operational review highlights a broader dilemma for the metals industry: navigating falling margins while transitioning to low-emissions output. Government support may offer short-term relief, but sustainable competitiveness will require deeper reforms in energy pricing and market structure.