Just months after a major report warned of the strategic risks posed by Australia’s weakening metals refining sector, the Albanese government has announced $57.5 million to support two key zinc smelters in South Australia and Tasmania.
The funding forms part of a broader $135 million transformation package backed by the South Australian and Tasmanian governments, contributing $55 million and $22.5 million respectively.
The move aims to rescue the smelters from mounting global pressures—including a flood of cheap zinc exports from China—and reposition them for the critical minerals era.
The investment will allow international metals producer Nyrstar to keep its Port Pirie and Hobart operations running while advancing detailed plans to modernise both sites and pivot toward refining high-value critical minerals.
The package will fast-track feasibility studies into producing strategic minerals like antimony and bismuth at Port Pirie, and germanium and indium at Hobart—materials essential for defence, electronics, clean energy, and advanced manufacturing.
An antimony pilot plant in Port Pirie will be a priority, potentially making it the only site in Australia producing the metal.
Antimony is an alloy hardener for other metals in ammunition and critical to manufacturing semiconductors, it is also used in flame retardants, lead-acid batteries, and other industrial applications.The overall plan also includes infrastructure upgrades, engaging more than 550 contractors and suppliers.
As per the announcement, Nyrstar contributes $1.7 billion annually to the economy and employs 1,400 workers, with 6,600 jobs supported indirectly.
“Through this partnership, Australia is demonstrating that it is at the forefront of taking meaningful steps to retain nationally strategic smelters and partner with industry to provide urgent short-term support, as well as work on solutions for their long-term viability,” said Nyrstar CEO Guido Janssen.
