That Nystar’s majority owner, Trafigura, has announced a strategic review of its Australian operations is deeply concerning.
Trafigura CEO Richard Holtum, speaking at a commodities summit in Switzerland, has revealed that the company regards its Hobart and Port Pirie smelters “uneconomical” due to Chinese competition. This insight follows the news in recent weeks that the Hobart zinc works would shed workers as it scales back production.
The significance of the unfolding situation at Trafigura must not be underestimated. The Hobart zinc works is a big employer and economic driver, and its closure would be a dreadful blow to the city. While commercial decisions are a matter for the company, now more than ever the Federal and Tasmanian governments must do whatever they reasonably can to support the smelter.
For my part I am in contact with both the Federal Government and Nystar about this matter.