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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.

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