SMELTING company Nyrstar is to receive a $135 million lifeline from the Commonwealth, Tasmanian and South Australian governments to ensure the future of its operations at Hobart and Port Pirie.
In early July, the company said the smelters were at risk of closing without government support.
In a statement to the ABC, Nyrstar Global chief executive Guido Janssen said the support package was crucial given the "extremely challenging global market conditions".
“This support demonstrates the strategic importance of the Australian operations for sovereign capability and delivering products needed globally for modern economies," Mr Janssen said in a statement.
The smelters are also associated with significant maritime task.
Federal Labor MP for the Tasmanian seat of Lyons, Rebecca White, welcomed the announcement given Nyrstar was “one of our state’s largest employers and today’s announcement will secure the jobs of 500 locals”.
“The Hobart site is also key to Australia’s sovereign manufacturing capability and part of Labor’s Future Made in Australia agenda,” Ms White said.
Premier of South Australia Peter Malinauskas was quoted as saying the package would ensure “a more prosperous future” for Port Pirie.
Two months ago, Nyrstar Australia chief executive Matt Howell said the company’s Port Pirie operation was losing tens of millions of dollars a month and needed government help fast.
The company says the situation was caused by China subsidising its own metals companies, distorting the market.
Nyrstar describes itself as “a global multi-metal business” that is focused on meeting the demand for zinc, lead and other metals.
“We have a market leading position in zinc and lead and have mines, smelters and other operations in Europe, the Americas and Australia,” the company says on its website.