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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-07-10 Daily Xml
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NYRSTAR

Mr BROCK (Frome) (14:12): My question is to the Minister for Mineral Resources and Energy. What is the state government doing to ensure the viability and the continuation of the Nyrstar smelters at Port Pirie? In The Australian this morning, there is an article regarding the closure or the uncertainty of the continuation of the smelter in Port Pirie. The closure of the plant would be devastating for the city of Port Pirie, and I would like to know what the government is doing regarding this issue.

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Manufacturing, Innovation and Trade, Minister for Mineral Resources and Energy, Minister for Small Business) (14:12): I understand that The Australian today published reports and comments by the opposition, comments similar to what the Leader of the Opposition federally said on 1 July about what happened to Whyalla.

An honourable member: Give us a song, Tom.

The Hon. A. KOUTSANTONIS: I don't want to break into song, like my colleague Craig Emerson—

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS: —and do a dad dance. I do have here a press release from Nyrstar, which I think is important the house be informed of. It is dated today (10 July 2012), and it states:

Nyrstar response to current media coverage.

There has been recent media speculation with regard to the impact of the Carbon Tax on Nyrstar's Port Pirie operations. The introduction of the Carbon Tax is not a factor in the decision making process related to any potential redevelopment of Port Pirie and the impact is not material to the Group as a whole—

Members interjecting:

The SPEAKER: Order!

Members interjecting:

The SPEAKER: Order! This is a very important question for the people of Port Pirie particularly. The member for Frome has asked an important question.

The Hon. A. KOUTSANTONIS: The press release goes on to state:

Our Australian operations continue to implement opportunities to sustainably reduce their operating costs in order to offset any additional costs related to the introduction of the Carbon Tax, which is currently estimated to add approximately $6M for the first year of the tax.

The press release goes on to state:

The Nyrstar position as communicated in July 2011...remains unchanged.

Our Hobart operation has been provided with the maximum assistance (i.e. 94.5% assistance), and our Port Pirie operation has also been provided with maximum assistance for its zinc smelting operations and 66% assistance for its integrated zinc/lead smelting operations.

Nyrstar is reviewing the technical and commercial merits of a potential redevelopment of the smelter with a view to reducing its environmental footprint and securing its future. The ability to gain the support of the government...[and] other third parties is crucial to any redevelopment.

And, importantly:

Nyrstar welcomes the establishment of the South Australian Government taskforce to assist with this process.

Nyrstar has just put to a lie what the opposition has said in the paper. I think their hysterical comments do not do them, or the people of Port Pirie, any justice. To hysterically claim that Port Pirie would be ruined and would lose 5,000 jobs because of the carbon tax is irresponsible, and Nyrstar agrees.

Members interjecting:

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS: Furthermore, the government has—

Members interjecting:

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS: —every reason to be confident in Nyrstar's resolve to remain a long-term major contributor to the South Australian economy. For the past six months this state government has been working closely with Nyrstar to ensure the viability of Port Pirie.

Contrary to comments made by the member for Norwood on radio this morning, the main issue facing the Port Pirie smelter is the need to improve environmental outcomes by improving data technology, not the carbon tax. To Nyrstar's credit, it has invested substantial amounts of capital in the past to minimise its environmental footprint; however, the company has publicly stated that it is reviewing the technical and commercial merits of a potential redevelopment of the smelter. The primary focus of this is reducing the environmental footprint and making sure it is a sustainable operation in the long term.

The state government is very supportive of that approach and is working with the company to facilitate reinvestment on the site. In May, the Premier met with Nyrstar's CEO, Roland Junck, and a number of other executives in London to discuss the long-term operation of the Port Pirie smelter. Today, as with the Nyrstar press release, I can confirm to the member for Frome, and members opposite, that the state government can announce the establishment of a high-level Nyrstar Port Pirie steering committee.

An honourable member interjecting:

The Hon. A. KOUTSANTONIS: You got it wrong once today; I think you should just calm down.

Members interjecting:

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS: The committee includes representatives from Nyrstar and the state government, as well as the current chair of the Olympic Dam Task Force, Mr Bruce Carter. The committee coordinated a range of activities around redeveloping the business case to enable a reinvestment and environmental upgrade of the smelter to proceed. As the elements of these discussions are commercial in nature, it is inappropriate to comment further on these matters, but I think all members can be reassured, especially the community of Port Pirie and the member for Frome, that the state government is working collaboratively with Nyrstar to deliver the best results for the smelter and the operations at Port Pirie and the community as a whole.

Members opposite, and the member for Frome, would be aware that the state government sees great potential for Port Pirie. That is why we announced $200,000 in funding in the budget to support key studies to help guide the long-term strategy for the further development of Port Pirie. The studies will look at long-term strategies for improved access to the port as well as maximising—

The Hon. I.F. EVANS: I have a point of order. Does the four-minute rule apply in this chamber?

The SPEAKER: Minister, your time has expired. Can you quickly wind up?

The Hon. A. KOUTSANTONIS: Yes, Madam Speaker. I think the press release by Nyrstar today proves that the opposition is behaving hysterically.

Members interjecting:

The SPEAKER: Order! Member for Frome, you have a supplementary?

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