The owner of the Port Pirie smelter in South Australia has announced it is considering shifting the plant's zinc operations to Tasmania.
Not great news for Pirie, and if it happens, it might stopyone from even considering developments there.More than 100 workers at the zinc operations at Port Pirie could be affected if production of 40,000 tonnes of zinc is shifted to Hobart.
LINK TO YOUTUBE PROFILE.An in-principle deal has been struck between Nyrstar and the Federal and South Australian Governments for a $350 million upgrade of the lead and zinc smelter at Port Pirie to a cleaner operation.
An advanced poly-metallic processing and recovery facility will be built, which the SA Government says will secure the long-term future of more than 2,500 jobs.
It said the upgrade would substantially reduce lead emissions in the Port Pirie area by replacing the ageing 120-year-old smelter with a much cleaner metal processing operation.
Nyrstar will put in $200 million for the redevelopment and the Federal Government will be the guarantor for private equity investment for the rest of the funding.
The planned work is now subject to feasibility studies, but the transformation is expected to lead to a significant improvement in air quality in the regional city.
The SA Government said it would put $5 million into an immediate clean-up of environmental concerns, including lead dust.
Nyrstar will also put in $3 million annually for a decade to the abatement program.
Local independent MP Geoff Brock welcomed the announcement and said the stigma of lead pollution should now become a thing of the past for the region.
"As former mayor and now the local MP I have longed for this day," he said.
The South Australian Government said giving major project status to the Port Pirie smelter redevelopment would cut the project approval process from years to months.
SA Planning Minister John Rau said it was vital to give the smelter operator Nyrstar as much certainty as possible, as it worked to find private investment for the proposed $350 million upgrade.
"That means that I guess the Rolls Royce approval process is being wheeled out. It means it's getting the most sophisticated attention that we're able to give it because of its importance to the whole state," he said.
That process will include an environmental impact statement (EIS).
Greens leader Mark Parnell said, based on previous experience such as BHP Billiton's Olympic Dam project, the EIS process needed to be more transparent.
"It's not Rolls Royce if the company is allowed to hide behind secrecy and not put its scientists up for quizzing and for questioning," he said.
Major Project status = Govt as judge, jury and spruiker. That's why EIS needs to be open to real scrutiny, not unverified claims
Greens' Mark Parnell on Twitter
Opposition regional development spokesman Martin Hamilton-Smith said the Opposition wanted to see more detail about the project before giving its support.
"We are giving in-principle support, but clearly we need to see the detail now of what the Government's proposing," he said.
"Once we've seen that detail we'll be able to tick the relevant boxes.
"There needs to be a thorough environmental planning and community approval and engagement process. The Government says it's planning to do that, we look forward to seeing the detail."
Final approval for the lead smelter upgrade rests with the SA Cabinet.
Metals company Nyrstar and the Federal Government have moved a step closer to finalising a proposed $350 million redevelopment of the Port Pirie smelter in South Australia.
Nyrstar said an implementation agreement had been signed with the Government's export credit agency.
The Government will be a guarantor to $150 million of the funding package which will come from third-party investors.
The rest will be raised by Nyrstar.
Final approvals for the lead smelter transformation are expected by the end of the year.
Port Pirie is celebrating news that the $385m upgrade of the Nyrstar lead smelter will go ahead, securing hundreds of jobs in the town.
SA Regional Development Minister Geoff Brock denies unnecessarily costing taxpayers millions. The SA Government will underwrite
around $250m of the cost, in a deal struck between SA Premier Jay Weatherill and local MP Brock. The SA Opposition says they
support the project but SA shouldn't carry all the risk. Port Pirie Mayor Brenton Vanstone says a technological upgrade will halve
pollution from the smelter.
A $600 million metals processing plant has officially opened at Port Pirie, securing more than 700 jobs.
Plant operator Nyrstar said the facility would significantly improve air quality in the town by reducing lead-in-air emissions by a margin unachievable with the old smelter at the site.
Premier Jay Weatherill opened the plant along with Nyrstar executives, and said it marked a new chapter in the history of Port Pirie.
"For Nyrstar, improved efficiencies provide a pathway to uplift earnings, and for Port Pirie we can lock in better health and environment outcomes for decades to come," he said.
Nyrstar chief executive Hilmar Rode said the development was crucial to the company's future, and it would put the safety of the community first.
"We are totally committed to a successful and safe ground plant," he said.
"We will face many more challenges along this journey, but I'm confident if we all continue with the same dedication that we have seen … we will ensure a sustainable future for the Port Pirie smelter and for the broader community."
Regional Development Minister Geoff Brock welcomed Nyrstar's investment in the area.
The redevelopment also was underwritten by the State Government by $291 million.
"Across Port Pirie, economic and social investments are being made that would not have been possible without Nyrstar committing to its long-term presence in this community," he said.
"Air quality is also expected to improve during the two-year ramp-up toward full production at the new facility, and will accelerate once the old sinter plant is decommissioned."
Smelter has chequered past with air pollution
Monitoring lead levels in the blood of people who live in the town will continue.
Regular checks have noted improvement in the amount of lead in those in the area, but the problems remain.
The plant is expected to be working at full capacity within two years.
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