PERTH (miningweekly.com) – The federal government will provide A$50-million to critical minerals producer Nyrstar Australia to modernise its Hobart zinc smelter, as part of this week’s budget.

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.”

The measure will support a A$400-million modernisation of the plant, securing the  future of 500 direct jobs in Tasmania. It will also support around 1 300 direct jobs and over 5 000 indirect jobs across Nyrstar’s Australian operations.

The new electrolysis plant will incorporate advanced technology that will improve the performance of the Zinc Works facility. It will allow Nyrstar to recover greater quantities of minerals and metals at its Port Pirie facility in South Australia.

“Nyrstar plays a vital role in the production and supply of metals such as zinc, lead, silver and copper,” Husic said.

“This upgrade will create an advanced manufacturing facility, helping to secure a long-term future for zinc metal refining in Australia.”

Husic said the government was focused on ensuring a greater share of Australia's raw materials are processed in Australia, pointing out that about 90% of Nyrstar’s raw material zinc for processing comes from Australian sources.

“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. Our investment in Nyrstar is one part of building that capability, with more to come through our A$15-billion National Reconstruction Fund.”

Nyrstar Australia VP Dale Webb welcomed the funding.

“Today’s announcement by the federal government demonstrates again the value of what we do in Australia and the importance of this new electrolysis plant to our sector and Tasmania,” said Webb.

“This ensures that the next generation of employees and businesses in Tasmania will continue to play an important role in the manufacturing of zinc, a mineral critical for the transition to a low carbon world.”

The project will commence late in 2022 with construction expected to take 28 months and finish in 2024/25.