The Federal Government has committed a further $105 million to support Nyrstar’s Port Pirie and Hobart smelters, backing feasibility work aimed at expanding Australia’s critical minerals processing capability.
The funding package, delivered in partnership with the South Australian and Tasmanian governments, will support continued operations at both facilities throughout 2026 while Nyrstar progresses studies into future investment opportunities.
It follows a $135 million package provided to Nyrstar in 2025, itself a tripartite commitment that brought together the Commonwealth, South Australia and Tasmania in a coordinated effort to modernise Australia’s smelting infrastructure.
A key focus of the new package is enabling Nyrstar to complete a pre-feasibility study and advance a further feasibility study examining opportunities to increase critical minerals production in Australia.
The announcement follows a landmark moment in November 2025, when Nyrstar successfully cast its first antimony metal from a pilot plant at its Port Pirie multi-metals facility, making it the only producer of antimony metal in Australia and one of the few globally.
The production of antimony at Port Pirie is primarily made possible through the processing of lead, enabling the site’s established lead smelting infrastructure to act as a foundation for the new operation.
The development involved re-engineering sections of the site’s copper plant and procurement of electrowinning cells and associated infrastructure, with additional metallurgists, engineers and mechanical tradespeople seconded to support commissioning and operations.
Initial batches of antimony metal were expected to be exported in the first half of 2026, to ramp up production to 2,000 tonnes per annum by the end of the year.
Subject to further investment and upgrades, the facility holds the potential to scale to 5,000 tonnes of refined antimony metal per annum by 2028, equivalent to approximately 15 per cent of global supply and nearly 100 per cent of the United States’ 2023 import volume.
Nyrstar general manager for Port Pirie Darin Cooper described the pilot plant milestone as a major step forward.
“Casting our first antimony metal is a major step forward for Nyrstar and for Australia’s critical minerals supply chain,” he said.
“This project demonstrates Port Pirie’s ability to produce strategic metals at scale and supports our ambition to be a reliable supplier to global markets.”
The Federal Government described the first shipment of antimony metal earlier this year as an important step towards establishing a more independent and sovereign domestic supply of the critical mineral, especially as it continues to be used in defence, as a semiconductor and in energy and automotive applications.
Antimony has since emerged as a strategically important material as governments globally seek to secure critical minerals supply chains.
Likewise, its strategic importance has grown sharply amid global supply chain disruptions, as well as China’s export restrictions on antimony-related products, intensifying pressure on Western governments to build alternative sources of supply.
Australia’s Minister for industry and innovation Tim Ayres said the latest investment would be a bridge between current operations and the longer-term transformation of both facilities.
“This investment supports the continued operation of these facilities while the next phase of work is completed,” he said.
“We are backing Australian industry and ensuring we maintain the capability to refine and process the minerals the world needs.
“This is about securing jobs, strengthening our industrial base, and positioning Australia higher up the global value chain.”
The support package will also see Nyrstar participate in a joint review with governments in the coming months to establish a framework for determining the long-term future of the Port Pirie and Hobart operations.
For South Australian premier Peter Malinauskas, the global strategic environment is a clear case for urgent action.
“The global instability in recent months has only underscored the importance of Australian sovereignty,” he said.
“The possibility of producing antimony and other critical metals in Port Pirie presents a unique opportunity to deliver what our nation, and indeed the world, needs.”
“Examining that opportunity thoroughly requires time, and this investment on behalf of three governments ensures that important work can continue apace.”
Further south in Tasmania, premier Jeremy Rockliff highlighted the broader economic significance of the Hobart facility, possessing zinc sourced from Rosebery on the west coast and from sites across the country.
“This investment will help keep power prices the lowest in the nation for Tasmanians, and it backs our industrial future, supporting sovereign capability and ensuring Tasmania remains a key part of Australia’s minerals processing supply chain,” he said.
The Hobart smelter directly employs more than 500 local workers and sits at the heart of Tasmania’s minerals processing sector.
