Skip to main content

Sulphur 418 May-Jun 2025

3 May 2025

Nyrstar to reduce output at Hobart

AUSTRALIA

Nyrstar to reduce output at Hobart

Due to an increasingly challenging market, Nyrstar will indefinitely lower production at its Hobart zinc smelter in Tasmania by around 25%. The plant’s zinc capacity is 280,000 t/a. “This decision follows a thorough and extensive review and is a direct response to deteriorating market conditions and financial losses being sustained by Nyrstar Australia,” the Trafiguraowned company said. “Nyrstar’s Australian assets continue to face significant financial challenges due to several external factors including worsening conditions in raw material markets, negative treatment charges and increased costs.”

The duration of the production reduction will depend on market and operating conditions, said the plant’s general manager Todd Milne, adding: “We remain optimistic about the future and have the flexibility to lift production levels when operating conditions improve.” The cutback will be implemented in stages from April. “There are no immediate job reductions planned, and the facility will continue to be maintained to retain flexibility,” Nyrstar added.

Last August the company put on hold modernisation of the smelter, which is more than 100 years old, because capex costs had increased by a quarter from the original figure of A$400 million (currently US$251 million). The project included installation of an electrolysis unit and other upgrades to enable greater recovery of minerals and metals at the company’s Port Pirie plant in South Australia. That plant produces commodity grade lead, copper matte, silver dore and sulphuric acid. The Hobart smelter produces special high grade zinc, zinc alloys and sulphuric acid.

Latest in Industrial

Manyar smelter faces supply issues

Freeport Indonesia may be forced to suspend operations at its Manyar smelter at the end of October due to a lack of copper concentrate, according to local press reports. The news follows the mudslide at the Grasberg mine in September, which killed seven workers. Grasberg, which represents almost 3% of global copper mine production, has halted production and Freeport says that it may not return to pre-accident operating rates until 2027. Stocks of copper concentrate at Grasberg were estimated to be only sufficient to operate the Manyar smelter until the end of October. The $3.7 billion Manyar smelter only resumed operations in May after a fire broke out in October last year, damaging the plant.

Government to limit new nickel projects

The Indonesian government has moved to limit new licenses for nickel projects in an attempt to correct overdevelopment of the industry and the subsequent crash in global nickel prices. The permit restriction applies to new nickel processing companies that produce intermediate products, both with pyrometallurgical (RKEF) and hydrometallurgical (HPAL) technologies. Currently, Indonesia already has 54 nickel processing plants operating, 38 in the construction stage, and 45 are still under planning.