The South Australian Government has announced it will contribute $5 million towards the funding of a feasibility study into the proposed upgrade of Nyrstar’s Port Pirie operations.

State Manufacturing and Trade Minister, Tom Kenyon, said that the funding will support a feasibility study for the Port Pirie Transformation Project, the $350 million proposed upgrade of the 120-year-old smelting facility into a new poly-metallic processing and recovery facility.

“The feasibility study follows more than two years of work already undertaken by Nyrstar and will provide the technical information required by the company to evaluate a final investment case with respect to the proposed transformation of its Port Pirie operations,” Mr Kenyon said.

“The funding for this study, along with the major project status provided last month, are providing Nyrstar with the support necessary to advance towards a final investment decision on this major investment in the future of Port Pirie.”

The feasibility study is currently expected to be completed by the end of this year, with the Nyrstar Board to review the final investment case following the final study.

Mr Kenyon said Nyrstar’s South Australian operations supported some 2,500 full-time equivalent positions, with 720 people and 133 full-time equivalent contractors employed directly from Port Pirie.

"Maintaining Nyrstar’s presence in South Australia through a $350 million investment in the latest technology will not only provide economic efficiencies for the company, but also deliver better environmental and health outcomes for Port Pirie.