Australia to provide A$135 million bailout for Trafigura lead, zinc smelters

[MELBOURNE] The Australian government said on Tuesday it will provide A$135 million (S$112.5 million) in financial support for two smelters owned by Nyrstar, a unit of commodity trader Trafigura, in the country’s south.

Trafigura put its troubled Port Pirie lead smelting operations in South Australia and its zinc processing operations in Hobart, Tasmania, under strategic review earlier this year, after high energy prices and lower processing fees made the businesses uneconomic.

As part of the review, Nyrstar assessed the possibility of producing the critical mineral antimony at its Port Pirie plant, but would need government help to do so, the company told Reuters in May.

Antimony is an alloy hardener for other metals in ammunition and batteries and is critical to the manufacture of semi-conductors found in electronics and defence applications and is used in flame retardant materials.

Under the funding package, Nyrstar will embark on studies to produce more critical minerals, in line with Australia’s strategy to be a key critical minerals producer, Nyrstar and the Australian government announced on Tuesday.

Nyrstar will assess what is needed to modify its operations to produce germanium and indium in Hobart and antimony and bismuth in Port Pirie, with an initial focus on accelerating an antimony pilot plant in Port Pirie, it said in a statement. REUTERS