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Calls for Nystar clarity on its SA future

South Australian independent MP Geoff Brock says there needs to be clarity on the future of jobs at the Nystar smelter in Port Pirie.

Sanjeev Gupta is seen on the Whyalla Jetty in South Australia
Sanjeev Gupta has not offered comment on involvement by his group in the Nyrstar operations in SA. (AAP)

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Source: AAP


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Port Pirie independent MP Geoff Brock has called for clarity on the future of jobs at the Nyrstar smelter but says he's confident in the long-term viability of the South Australian town's major employer.

With the company confirming plans to cut 120 jobs in 2019, Mr Brock says the communication from Nystar has been "lacking" and workers need to know where they stand.

"I have full confidence in the workers and the plant itself," Mr Brock told reporters on Thursday.

"But the workers there just need clarity on how, when and who and actually how many bodies will be involved with this restructure."

Nystar said it remained committed to a sustainable future for its Port Pire operations and would continue to look at opportunities to further optimise the plant.

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It recently completed a $660 million redevelopment to cut pollution and enhance the viability of the smelter, with $291 million of that underwritten by the previous Labor state government.

The company said the job cuts next year would be achieved across production, operation and maintenance roles and would include the closure of the sinter plant by the end of 2019.

"We will achieve the majority of these changes through natural attrition, a change in the scope of work undertaken by some roles, redeployment of some people to different roles and by not extending a number of the limited tenure employee contracts," Nyrstar said in a statement.

"We take our responsibility to our employees and the wider Port Pirie community very seriously and will complete this process in a responsible manner.

"As usual, we will take great care to minimise the impact on our employees and will consult thoroughly before any changes are implemented."

Nyrstar's global chief executive Hilmar Rode is expected to visit the SA plant next week and will talk with Liberal Treasurer Rob Lucas.

In May Mr Lucas described as surprising a decision by the company to defer payments to its international financiers by 18 months until November 2019.

Nyrstar blamed cost overruns, delays in completion of the upgrade, delays in reaching full production and their impact on earnings for its decision.

But it prompted the state government to "demand in writing that Nyrstar Group members comply with their obligations".

Also on Thursday, British industrialist Sanjeev Gupta, who rescued the Whyalla steelworks, declined to comment on possibly working with Nyrstar.

Mr Gupta said he had a policy of not commenting on speculation and issues that "shouldn't really be talked about in public unless they become reality".


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