The 2022 Federal Budget has committed $50 million to Nyrstar to modernise its Hobart zinc smelter.
The measure will support a $400 million modernisation of the plant and is expected to strengthen the manufacturing capability of not only Tasmania, but the nation as a whole.
Tasmanian Minister for Industry and Science, Ed Husic, said the Nyrstar Hobart zinc smelter is an important contributor to the Tasmanian economy, securing local jobs.
“This investment will help strengthen Australia’s sovereign manufacturing capability of valuable metals necessary to our transition to net zero by 2050.”
Nyrstar said this will secure the long-term sustainability of 650 jobs in Hobart and a further thousand jobs at the linked Nyrstar operations in Port Pirie, South Australia, as well as supporting jobs for more than 5,000 people in direct supply chain companies in Tasmania and regional South Australia.
“Nyrstar plays a vital role in the production and supply of metals such as zinc, lead, silver and copper,” Mr Husic said.
“This upgrade will create an advanced manufacturing facility, helping to secure a long-term future for zinc metal refining in Australia.”
Mr Husic said the Federal Government is focused on ensuring a greater share of raw materials are processed in Australia, with about 90 per cent of Nyrstar’s raw material zinc for processing coming from Australian sources.
Zinc is a vital input for critical supply chains, including renewable energy infrastructure, construction materials and anti-corrosion coatings on steel.
“We want to build a stronger and more resilient future and that includes adding value at home, delivering secure well-paid jobs and skilling up for the technologies of the future,” Mr Husic said.
“Our investment in Nyrstar is one part of building that capability, with more to come through our $15 billion National Reconstruction Fund.”
Tasmanian Labor Senators and Federal Members of Parliament have welcomed the announcement.
“This is a fantastic investment for Southern Tasmania supporting secure, well-paid jobs,” a spokesperson from the Tasmanian Federal Labor Team said.
“This commitment will help secure direct local jobs in Hobart and surrounds, and will help future-proof this vital industry for the region.”
The project will commence in late 2022, with construction expected to take 28 months and conclude in 2024-25.
Both the Commonwealth and State Government will provide funds to support the project.
