Nyrstar

The Hon. T.J. STEPHENS (15:15): My question is to the Treasurer. There have been recent stories about Nyrstar's global operations. Could you update the house on any information that you have?

The Hon. R.I. LUCAS (Treasurer) (15:15): I thank the honourable member for his ongoing interest in Nyrstar and indicate, as I'm sure his position is, the government's position absolutely is one of trying to ensure that the best interests of the workers and their families at Nyrstar Port Pirie and the best interests of Nyrstar and Port Pirie generally are well protected and that ultimately they will be well served by, hopefully, the transformation project at the smelter at Nyrstar proving to be as successful as the company and the former government originally envisaged. Certainly, the new government shares those wishes and desires in relation to what we hope will be a successful project.

I have indicated on the public record the concerns the South Australian government has had in relation to the failure of Nyrstar to meet what we believe were agreed repayment schedules, both in May and a forecast repayment in November. However, I guess the reports the honourable member is referring to are some concerning reports released internationally by analysts of Nyrstar globally in relation to its financial health. There has been some local media interest in those stories.

In particular, I think there was some analysis by an analyst from ABN AMRO, who has made some inflammatory comments—perhaps I shouldn't use the word inflammatory—has made some comments which have attracted the media, and a lot of attention in financial circles as well. The analyst from ABN AMRO has, so it is reported, indicated that shares in Nyrstar were virtually worthless and advised clients to abandon ship. ABN AMRO analyst Philip Ngotho, in his report, reiterated a sell rating and setting a 1¢ target price.

The first thing I would say is that whilst ABN AMRO are entitled to an assessment of Nyrstar's global position it is, at this stage, an assessment by an analyst. Clearly, the financial markets and the share price have responded to not only that piece of analysis but one or two others, and the share price for Nyrstar has dropped significantly overnight in trading in Europe. The South Australian government, on behalf of the taxpayers of South Australia, because we have—on behalf of taxpayers—$291.25 million swinging in the breeze in relation to taxpayer-funded guarantees for this particular operation, would urge caution and sober analysis in relation to the global prospects for Nyrstar but in particular, I guess, a sober analysis of the prospects of Nyrstar at Port Pirie.

As I said, it is certainly the South Australian government's fervent wish that the projected success by the former government and Nyrstar locally for this particular transformation will prove to be successful and we will endeavour to do, as the new government, everything that we can to assist the accomplishment of that particular shared goal.

I have highlighted before, and I have clarified the actual date, that I have a meeting with Mr Hilmar Rode, who is the global CEO of Nyrstar and who is coming to South Australia—I am sure for other meetings as well, but as part of that—to meet with me representing the South Australian government. I would hope in that meeting on Monday afternoon that he will be in a position to provide some better news in terms of Nyrstar's intentions both globally, but more importantly, their intentions in relation to the local project at Port Pirie.

Members will be aware that in the early days Nyrstar globally was highlighting the potential success of the Nyrstar Port Pirie project as being a significant driver of the potential future success or otherwise of Nyrstar globally. We obviously hope that will still be the case, but on behalf of the South Australian government and on behalf of the taxpayers of South Australia, I will have the opportunity on Monday afternoon to meet with Mr Rode to get a firsthand assessment, we hope, of the prospects of a successful completion of the project, we hope, at Port Pirie, but within the context of whatever it is that is occurring within Nyrstar globally.

The ABN AMRO analyst and, indeed, other financial analysts in Europe are speculating on a potential major restructuring of Nyrstar globally in terms of their financial structure. We understand that Morgan Stanley have been employed, according to the media reports, and are looking at options for Nyrstar globally. Can I assure members of this chamber and the taxpayers of South Australia that the South Australian government will do all it can within the legal obligations we have signed up by the former government to not only try to protect the jobs of workers in Port Pirie but also to try to protect the $291.25 million in taxpayer funds that we have swinging in the breeze as part of the guarantee underwritten by the former government.