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The operator of two of Australia’s biggest smelters Nyrstar says "all options are on the table" as it considers the future of its Hobart and Port Pirie operations. The federal, Tasmanian and south Australian governments are in talks on a new funding deal while the company warns closure is still an option.

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00:02NEARSTAR's 109-year-old Hobart zinc smelter employs more than 500 people.
00:07Last August, the state and federal governments gave it and NEARSTAR's Port Pirie smelter
00:12a $135 million lifeline, which was phase one of the longer-term rescue package.
00:19It expired today.
00:20That's why, last evening, I met with the Federal Minister and indeed the South Australian
00:27Premier as we are working through a package of support.
00:32Tasmania announced another $7.5 million in funding today, but it's not clear how long
00:38it's supposed to last.
00:39Generally, people are quite anxious that things haven't been sorted out for the second round
00:46of support.
00:47A two-year feasibility study into the two smelters' viability is underway.
00:51It's not due until mid-next year at the latest.
00:54The Port Pirie smelter was upgraded recently to produce antimony, a critical mineral used
01:00in defence equipment.
01:01Late today, the company said it was reviewing production.
01:05Hobart smelter also makes critical minerals, key capabilities given Australia's aim of becoming
01:11a major supplier.
01:12As a nation, we have to make a decision.
01:15Are we going to lose our smelting capacity, just like we gave up our capacity to refine
01:19fuels?
01:20The Federal Industry Minister wasn't talking publicly today, neither was Neistar, but it
01:26issued a statement in part saying, disappointingly, we've not been able to reach agreement on the
01:31next phase and now have to consider all options for the business.
01:36All options also means the company's considering closing the Hobart and Port Pirie smelters.
01:42Whether the company is serious about that threat, we don't know.
01:45Or whether it's a bargaining chip, used by the parent company, Trafigura, a leading international
01:51commodity supplier, which is well used to playing hardball with governments in negotiations.
01:57We're talking about a lot of money involved here.
01:59It's taxpayers' money.
02:00And we've got a responsibility not just to, you know, blindly accept any company's version
02:07of events and sign a blank cheque.
02:09The South Australian Premier was hoping a new government deal would be ready by the end
02:14of today.
02:14And we've got a lot of money.
02:15We've got a lot of money.
02:15We've got a lot of money.
02:17We've got a lot of money.
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