National

Funding lifeline saves smelters, more than 1000 jobs

Jun 10, 2026

Nyrstar smelter in Hobart — A federal and state funding package has been announced for Nyrstar's smelter in Tasmania. -AAP Image

More than 1000 workers at two major smelters have been given a lifeline after a metals producer received a $105 million government boost.

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The joint federal and state funding will keep Nyrstar's Hobart and Port Pirie, South Australia, plants running through 2026 while the international company weighs up major investments in critical minerals production.

The agreement follows the expiry of a $135 million rescue package in May and weeks of tense talks over how much taxpayer money would be put on the table to secure the sites.

The new deal would keep workers in jobs and protect Australia's ability to process minerals vital to defence, semiconductor, energy and automotive industries, Industry and Innovation Minister Tim Ayres said.

Nyrstar, headquartered in the Netherlands, is a major producer of lead, silver, zinc and other critical minerals at the Port Pirie and Hobart smelters

"This investment supports the continued operation of these facilities while the next phase of work is completed," Senator Ayres said.

"This is about securing jobs, strengthening our industrial base, and positioning Australia higher up the global value chain."

The funding is crucial for Nyrstar to keep its smelters operating while it completes a pre-feasibility study to expand and accelerate critical minerals output, including antimony.

Under the earlier package, Nyrstar shipped Australia's first consignment of domestically produced antimony metal, which governments have cast as a step towards more secure, sovereign supplies of the strategic mineral.

As part of the latest agreement, Nyrstar will launch a joint review with the federal, SA and Tasmania governments in coming months to map out longâ€‘term options for the Port Pirie and Hobart sites.

SA Premier Peter Malinauskas said the deal backed hundreds of jobs in Port Pirie and recognised the strategic value of producing antimony and other critical metals onshore amid growing global instability.

Tasmanian Premier Jeremy Rockliff said the Hobart smelter supported more than 600 direct jobs and over 1000 indirect roles and contributed more than $510 million a year to the state's economy.

Governments are selling the package as hard-headed industrial policy designed to keep regional workers employed and give Australia more control over the critical minerals supply chains it relies on.