News Releases
Nyrstar Invests in Long-Term Future of Australian Assets
Melbourne, Australia (19 August 2008) - Nyrstar NV, the world's largest producer of zinc metal and alloys, today announced its intention to review its Australian assets in Hobart, Tasmania, and Port Pirie in regional South Australia with a view to reducing operating costs and improving the long-term future of these operations.
The review will encompass two separate studies, the first of which will assess the feasibility of shifting production of approximately 40,000 tonnes of zinc metal from Nyrstar's Port Pirie operation to its Hobart operation. Should the company pursue this option, it would lead to the expansion of its Hobart operation, establishing it as one of the largest producers of zinc metal in the world with production in excess of 300,000 tonnes per annum.
In parallel, Nyrstar has committed A$2.3 million to undertake a study with WorleyParsons to assess its options to modernise its smelting technology and increase multi-metals recycling at its Port Pirie operation. Any resultant equipment and technology upgrades would also result in a significant investment at the site.
Nyrstar chief operating officer Greg McMillan said that while no final decisions had been made with respect to either site, the company was announcing its plans so that it could openly engage with its stakeholders and begin the detailed work necessary to progress the two studies.
"Given the scope of the review, we believe it is crucial that we consult widely with our stakeholders in South Australia and Tasmania so that we can understand and proactively address any questions they have. We have begun this work at a high level already, and we will now continue it at all levels.
"While it would be premature to speculate on the outcome of either feasibility study, Nyrstar firmly believes in the strategic merits of the review which at its core aims to lock in a long and vibrant future for both sites."
The company anticipates it will take approximately three months to assess the feasibility of shifting the production of zinc metal to Hobart and should a decision to proceed be reached, it would require at least a further 12 months to implement.
It will take approximately six months to determine the options Nyrstar has to modernise its smelting technology and increase multi-metals recycling at Port Pirie.
As part of the review, Nyrstar will undertake a comprehensive program of consultation with local government and regulatory authorities, local communities, employees and other key stakeholders.
Nyrstar will continue with business as usual while it undertakes the review.
- end -
About Nyrstar
Nyrstar NV is the world's largest producer of zinc metal and alloys, and in addition, is one of the world's largest primary lead smelting and refining companies. The company produces other valuable by-products including copper, gold and indium, along with significant quantities of refined silver. In 2007 Nyrstar produced more than one million tonnes of zinc. Incorporated in Belgium and with its corporate offices in London (United Kingdom) and Balen (Belgium), Nyrstar has wholly-owned operations in Australia, Belgium, France, the Netherlands and the USA and joint ventures in Australia, China and France. Nyrstar is listed on Euronext Brussels under the symbol NYR. For further information visit the Nyrstar website, www.nyrstar.com
Contacts
Investors / Media
Jan Altink
Director IR and
Communications
T: +44 20 7408 8119
M: +44 7912 269 483
Craig Chapman
IR Manager
T: +44 20 7408 8195
M: +44 7912 391 370
or
Nicholas Bastin
Capital MS&L
T: +44 20 7307 5335
M: +44 7931 500 066
Jan Van Heuverswyn
Interel (Belgium)
T: +32 475 370 338
« Back
