Name and Location
Port Pirie smelter redevelopment project, Australia.

Client
Nyrstar.

Project Description
The project involves the redevelopment of the 120-year-old Port Pirie smelter, located in South Australia, into an advanced metals recovery and refining facility.

Upon completion, Nyrstar expects an estimated 50% increase in throughput that will allow for the rest of the Port Pirie site to be used at full capacity. Increased furnace flexibility will enable Nyrstar to significantly improve the added value from production at the site by processing a wider range of high-value and high-margin concentrates and residues from the company’s existing smelters. Concentrates from the company’s own mines and residues from Nyrstar’s zinc smelting network are expected to account for about 50% of feed material requirements. As the contribution from free metal and by-products increases, and the dependence on treatment charges reduces, gross profit is expected to materially increase.

The redevelopment will also reduce the environmental footprint of the existing smelter, providing a step-change reduction in airborne metal and dust emissions.

The smelter will produce a range of metals, including an estimated 250 000 t/y of refined lead, 40 000 t/y of zinc in fume, 7 000 t/y of copper, 25-million ounces of silver doré a year and 100 000 oz/y of gold.

Value
The project will cost about A$514-million to implement.

Duration
Construction is expected to begin early next year, with the facility expected to be fully operational by the end of 2016.

Latest Developments
The South Australian government and Nyrstar have agreed to a A$514-million investment to transform the Nyrstar smelter at Port Pirie.

Under the agreements reached between Nyrstar and the state government, the metals development company will directly contribute A$103-million to the project, while the South Australian government will underwrite a seven-year A$291-million third-party funding guarantee.

Nyrstar will contribute a further A$120-million, which will be raised through a transaction for the forward-sale of silver output from the Port Pirie facility.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Nyrstar group manager investor relations, Amy Rajendran, tel +41 44 745 8103 or email amy.rajendran@nyrstar.com.