The federal government has announced a $50 million investment in Nyrstar, a critical minerals and metals producer, in a bid to strengthen Tasmania and Australia’s manufacturing capability.
Expected to be delivered in the Albanese government’s next budget, the investment will allow Nyrstar to modernise its Hobart zinc smelter— a crucial contributor to the Tasmanian economy, according to Minister for Industry and Science Ed Husic.
“This investment will help strengthen Australia’s sovereign manufacturing capability of valuable metals necessary to our transition to net zero by 2050,” Husic said.
The $400 million modernisation project 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, the company said in a statement.
Once completed, the modernised facility will support more than 5,000 additional job positions in direct supply chain companies in Tasmania and regional South Australia.
According to Minister Husic, the Albanese government is zeroed in on ensuring a greater share of Australia’s raw materials is processed within the country. Over 90 per cent 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,” Husic said.
“Our investment in Nyrstar is one part of building that capability, with more to come through our $15 billion National Reconstruction Fund,” the minister added.
Zinc is a vital input for critical supply chains, including renewable energy infrastructure, construction materials and anti-corrosion coatings on steel.
The modernisation project is slated to break ground by the end of 2022, with construction expected to take 28 months and finish between 2024 and 2025.
Both the federal and state governments have pledged to back the initiative.
“This is a fantastic investment for Southern Tasmania supporting secure, well-paid jobs,” said the Tasmanian Federal Labor Team.
“This commitment will help secure direct local jobs in Hobart and surrounds, and will help future-proof this vital industry for the region.”
