Nyrstar

The Hon. D.G.E. HOOD (15:20): My question is to the Treasurer. Will the Treasurer update the chamber on the government negotiations with Nyrstar?

The Hon. R.I. LUCAS (Treasurer) (15:20): I am pleased to give a quick update on Nyrstar. I thank the member and others who have inquired about progress with Nyrstar. The last statement I made to the house and certainly publicly was that, having met Mr Hilmar Rode, who is the global CEO of Nyrstar, we had hoped to renegotiate some sort of agreement by the end of the first quarter. The first quarter has concluded and we have not actually concluded any discussions.

I can place on the record that I am advised that there are still constructive discussions going on between officers representing the government and Nyrstar. We are still hopeful that we might be able to reach some sort of satisfactory conclusion in the not-too-distant future. There is obviously some pressure on Nyrstar to reach some sort of satisfactory conclusion to the negotiations with the government.

As international financial reports have highlighted, there continues to be continuing pressure on Nyrstar globally. They are seeking to renegotiate their financial structure internationally. A successful conclusion to negotiations with the state government of South Australia is obviously an important prerequisite to those discussions. In the coming months they will also have an annual general meeting, which obviously is of critical importance to the future of the company globally.

The state government's position remains as it has been consistently. We are desperately keen to see a successful project continue at Port Pirie for the workers, their families and the community of Port Pirie—and the state, frankly. Secondly, we are also desperately interested in protecting the $291 million that taxpayers, potentially, have at risk in relation to the financial success or otherwise of Nyrstar at Port Pirie. I can indicate that on behalf of the government I have kept in close contact with the local member for Port Pirie to keep him as fully informed as I can in relation to the negotiations. He clearly has an ongoing interest on behalf of families and workers at Port Pirie.

To conclude, we did not meet the deadline that we had self-imposed to try to conclude these arrangements, but we remain hopeful that in the not-too-distant future we might be able to conclude successfully those discussions.