A $135 million dollar assistance package for Nyrstar smelters in Port Pirie and Hobart ran out last Friday (1 May).
It is expect the taxpayer will bail out Nyrstar again although long term, the position of the company looks grim.
The South Australian government had contributed $55 million, Tasmania contributed $22.5 million and the federal government provided $57.5 million.
South Australia’s Premier Peter Malinauskas said he was “concerned” about the future of the Nyrstar metal smelter in Port Pirie.
“We have not yet been able to conclude negotiations for the future of that support package into the future,” he told 891 ABC Adelaide.
Malinauskas said that all governments “remain at the negotiating table” to secure the future of operations, but he could not provide any guarantees for workers.
“It is not true to say that negotiations have broken down, but it is true to say the negotiations remain ongoing and that was true as recently as yesterday,” he said.
Malinauskas said he hoped a “renewed joint government position” would be put to the operators of Nyrstar Port Pirie and Hobart by the end of the day.
“And that is a major concern. But it doesn’t speak to the national imperative here,” he said.
Malinauskas said Port Pirie “has to remain an ongoing operation”.
“If we lose our smelting operations, we lose our ability to produce critical minerals and metals, which we know the rest of the world needs, particularly like-minded nations,” he said.
Tasmanian Premier Jeremy Rockliff said he met with Mr Malinauskas and the federal minister last night to try and work through a new support package to ensure “the long-term viability” of Nyrstar.
He said the Tasmanian government had already provided $22.5 million in support, with a further $7.5 million on offer from the state.
He said the state and federal governments had worked well together, providing proportional funding, but it was “vital that the federal government do take a leadership role here”.
He said many workers were likely feeling anxious but said “we are in your corner”.
A spokesperson for Minister for Industry and Innovation Tim Ayres said he was “committed to maintaining” Australia’s smelting industry.
Nyrstar Port Pirie general manager Darrin Cooper said “all options” for the future of the company were being considered.
“Over the past nine months we have delivered important upgrades and commenced production of the nation’s first antimony metal in partnership with government,” he said in a statement.
“Disappointingly, despite this progress, as of today we have not been able to reach agreement on the next phase and now have to consider all options for the business.”