Zinc prices climb as Nyrstar announces major production cuts at Tasmanian smelter

Global zinc prices have risen on news that leading global zinc producer Nyrstar is planning to cut around 25% of output from its 280,000-tonnes-per-year Tasmanian smelter.

Zinc prices are sitting at US$2,936 per pound after Nyrstar revealed it was reducing production at its Hobart zinc operations from April 2025 until further notice.

Nyrstar Hobart general manager Todd Milne said the company decided to make the move following an extensive review of its operations and as a direct response to deteriorating market conditions and financial losses being sustained by Nyrstar Australia.

Financial challenges

Mr Milne added that Nyrstar’s Australian assets continue to face significant financial challenges due to various external factors including worsening conditions in raw material markets, negative treatment charges and increased costs.

The Nyrstar Hobart zinc smelter is one of the world’s largest in terms of volume, targeting high-value-added products for export primarily to Asia.

The facility is closely integrated with Nyrstar Australia’s Port Pirie multi-metals smelter, which processes Hobart’s paragoethite by-product as well as other leach by-products.

Nyrstar is owned by global commodity trader and supply chain logistics company Trafigura.

No job cuts planned

Mr Milne said the company had no immediate plans to reduce the workforce at Hobart and that the facility would continue to be maintained.

“Nyrstar Australia plays an important role in maximising the value of Australian metals and minerals,” Mr Milne said.

“We remain optimistic about the future and have the flexibility to lift production levels when operating conditions improve.”

The reduction in production will be implemented in a staged approach, with cuts at the Hobart smelter to begin in April and the duration of the decrease dependent upon future market and operating conditions.