June 5, 2025: Nyrstar has called on Australia’s leaders to boost support for lead and zinc refining operations in the country amid worsening conditions in global raw material markets.
Lead and zinc refining at the firm’s Port Pirie and Hobart sites is the gateway to producing critical minerals needed to power Australia’s clean energy ambitions, according to a new Nyrstar-commissioned report released on May 28.
The report, ‘The Economic and Strategic Importance of Multi-Metals Processing’ came after Trafigura-owned Nyrstar revealed on March 12 that it was reducing production at its Hobart zinc operations in Australia by around 25% until further notice.
That decision came after an extensive review and in response to what Nyrstar said were deteriorating market conditions and financial losses.
According to the new report, produced by economics research firm Mandala, if zinc and lead processing were lost, Australia’s ability to rebuild smelting infrastructure and workforce pipelines would be “near-impossible due to cost, time and skills loss”.
Australia can use existing lead and zinc processing capabilities to produce five of the country’s registered critical minerals — antimony, bismuth, tellurium, germanium, and indium, the report said.
“These critical minerals are considered vital for sectors including defence, clean energy, high tech applications, transport and advanced manufacturing.
“As one of the world’s leading exporters of refined lead and zinc and the holder of the largest reserves of both metals globally, Australia is in a unique position to benefit.”
The report said without “decisive and targeted policy support” to address the imbalance in global metals refining and modernise infrastructure, Australia risks falling further behind in industrial and critical minerals processing and losing its existing sovereign refining capability in lead and zinc.
Hobart and Port Pirie generated A$1.7 billion ($1.2 billion) in economic value last year and the combined facilities support over 6,600 Australian jobs.
According to the report, China dominates between 52% and 82% of global production for the very critical minerals that lead and zinc processing can give rise to, leaving Australia and other countries vulnerable to supply chain disruptions and geopolitical risks.
Matt Howell, CEO of Nyrstar Australia, said: “Our lead and zinc refining capabilities in Port Pirie and Hobart are more than just smelters, they are national assets.
“Governments, both state and federal must work together with industry if we are to secure the future of these assets and avoid losing a once-in-a-generation opportunity to enter the global critical minerals supply chain.”
