A NEW PORT PIRIE
Transforming the future
ABOUT THE PORT PIRIE OPERATION
Located on the eastern shore of the Upper Spencer Gulf
in South Australia, approximately 230 kms north of
Adelaide, the Smelter has been in constant operation
for more than 120 years. There is an adjacent dedicated
port facility where concentrates are received, with
final products dispatched by road and rail.
– Port Pirie is a primary lead smelter which also has
the flexibility to treat a small range of other metal
bearing feed material. Port Pirie is one of the world’s
largest primary lead smelting facilities and the third largest
silver producer, which allows it to benefit from significant
economies of scale.
– Port Pirie is strategically linked to the Hobart operation
through flows of by-products such as paragoethite and
leach products.
Fast Facts
– Location
– Port Pirie, South Australia
– Technology
– The Port Pirie operation incorporates a
lead smelter and refinery, a precious metals
refinery, a copper plant and a zinc plant
Products
– Commodity grade lead, zinc, silver, copper cathode,
gold and sulphuric acid
Employees
– 858 (including 133 contractors)
Production 2011
– 195,000 tonnes lead metal
– 30,000 tonnes zinc metal
– 4,000 tonnes copper cathode
– 18,563,000 troy ounces silver
– 36,000 troy ounces gold
Port Pirie is situated within the Upper Spencer Gulf region
of South Australia
Port Augusta
Whyalla
Port Pirie
Spencer
Gulf
ADELAIDE
Great Australian Bight
A NEW PORT PIRIE - TRANSFORMING THE FUTURE3
ABOUT THE
IN-PRINCIPLE
AGREEMENT
Nyrstar has reached an in-principle
funding and support agreement
with the South Australian and
Commonwealth Governments
to redevelop the Port Pirie smelter
(the “Transformation”).
The Transformation, subject to
feasibility studies, would include
investment in new technology
to upgrade the facility to an
advanced poly-metallic processing
and recovery facility capable of
processing a wide range of high
value, high margin raw materials
and resulting in an improved
environmental footprint and a
step change reduction in airborne
metal and dust emissions.
The progression of the first phase
of the Transformation into execution
is dependant on the successful
completion of pre-feasibility
and bankable feasibility studies,
which is expected to complete
by the end of 2013. Assuming
that the Transformation is to
be completed as expected,
commissioning of the new plant is
expected to occur early in 2016.
CONTENTS
THE TRANSFORMATION
The opportunity for a sustainable future
05
THE REGION’S CHALLENGE
Port Pirie faces a significantly
challenging future
11
PORT PIRIE’S SIGNIFICANCE
Nyrstar’s contribution to the region
15
Port Pirie. The City of Friendly People
“Your home renovators come in with good questions “What should I do and how should I do it?”
Michael Hill
A NEW PORT PIRIE - TRANSFORMING THE FUTURE5
THE
TRANSFORMATION
The Port Pirie
Transformation
project will deliver
an innovative and
sustainable solution
to the current
environmental and
technical challenges
facing the Nyrstar
Port Pirie operation.
If commissioned, the new facility
is expected to have an operating
life in excess of 30 years.
The Port Pirie Smelter has been in continuous
operation since 1889, with many of the core production
assets having been in service for up to 60 years.
While considered best practice at the time, these assets
are no longer capable of meeting the increasingly
stringent environmental and operational standards
expected of a modern base metals facility.
Nyrstar’s strategic solution involves transforming its
Port Pirie operations away from that of a primary
lead smelter into a highly flexible poly-metallic
processing and recovery facility. Outdated process
plant will be permanently decommissioned in favour
of state-of-the-art, best available technology.
Specifically, the proven Transformation will replace the
outdated sinter plant with a state-of-the-art oxygen
enriched bath smelting furnace, coupled to an electricity
cogeneration facility and a new sulphuric acid plant.
Application of fully enclosed bath smelting
technology will both deliver a step change reduction
in emissions from the site and allow a greater range
of valuable metals to be recovered and produced.
A potential Stage Two would allow replacement of
the existing blast furnace with a second bath smelting
furnace, further improving process efficiency.
High temperature, oxygen enriched bath smelting
is acknowledged globally as best available technology
for integrated base metals production and
has a range of features and benefits:
– Fully enclosed furnace design enables a step change
reduction in airborne metal and dust emissions,
enabling the site to meet or exceed the stringent
environmental performance standards. All material
transfer points are completely enclosed and
drafted through a microfiltation baghouse.
– Full capture of sulphur dioxide and conversion
to value added sulphuric acid will eliminate any
instances of nuisance sulphur dioxide gas within the
city of Port Pirie and the surrounding environment.
– A straight-through process means the avoidance
of large tonnages of metal bearing intermediate
materials being stored on site, thereby eliminating
a source of metal dusts being mobilised into the
community on high wind days.
– Recovery of energy from the smelting process; heat
will be converted to steam, resulting in significant
electricity cogeneration and consequent reduced
load on the existing state electricity grid.
– Reduced carbon footprint from improved furnace
design and improved energy efficiency.
– Further reduction in potable water use and increased
water recycling, with reduced site effluent.
Engineering model of the state-of-the-art
facility featuring the oxygen enriched
bath smelting furnace (centre picture).
Sulphur rich
gas to acid plant
Feed ports
Lead bullion tap
Oxygen lances
Fully enclosed, oxygen enriched
Bath smelting furnace
A NEW PORT PIRIE - TRANSFORMING THE FUTURE7
THE
TRANSFORMATION
STORY
Nyrstar and the South Australian
Government began discussions in
2011 to determine the best way
forward for the company’s Port Pirie
operation in the expectation that
a new licensing agreement with
the South Australian Environmental
Protection Authority would
require additional investment to
transform the existing operation.
A Port Pirie Transformation
Taskforce established by the State
Government began working with
Nyrstar and Commonwealth and
State agencies to determine the
most advantageous path forward
that would deliver certainty to the
company and a long-term future
for the Port Pirie operation.
The transformed facility will continue to
produce the current range of metals including
zinc, gold, silver, copper and lead.
However the application of high temperature
bath smelting also allows a wider range of raw
materials to be processed, moving toward recycling
solutions such as end of life consumer electronics.
These materials are rich in precious and exotic metals
such as gold, silver, germanium, indium and tellurium,
among others.
Currently Australia has no facility to process and
recover the valuable metals in this growing waste
stream; the transformed Port Pirie facility will have
the process capability to meet this need.
– In many instances, the ‘whole waste’ can be processed;
it will not need significant pre-processing.
–V
aluable metals will be recovered.
–E
nergy content in plastics will be recovered to reduce
coal consumption.
Key e-waste metals can be recovered
– C urrently, this includes copper, silver, gold, tellurium,
zinc and lead.
– Independent of the Transformation this can be expanded
to include germanium, indium and antinomy,
among others.
The technology is proven
–H
igh temperature, oxygen enriched bath smelting is
the same class of core technology utilised by leading
multi-metals facilities in Europe, North America and Asia.
Investment in Port Pirie will deliver the first
Australian state-of-the-art poly-metallic
processing and recovery facility able to:
– Flexibly process a wide range of high value, high margin
raw materials.
– Recycle raw e-waste, realising the full value of
recoverable metals.
A NEW PORT PIRIE - TRANSFORMING THE FUTURE9
The Transformation of
the Port Pirie smelter
will deliver a step change
reduction in lead-in-air
emissions and lead to a
significant improvement
in community health.
The Transformation
will deliver a significant
improvement in
environmental
performance and a
reduced environmental
footprint.
Carbon emissions and
carbon intensity will be
reduced during each
stage of the investment.
While the Transformation will deliver significant
environmental improvements, support for communitybased health and environmental initiatives that raise
awareness and improve children’s health will be ongoing.
A NEW PORT PIRIE - TRANSFORMING THE FUTURE11
Transformation will
deliver a long-term
commercially and
environmentally
sustainable
poly-metallic processing
and recovery facility
able to process and
recycle high value, high
margin raw materials.
“Your home renovators come in with good questions “What should I do and how should I do it?”
Michael Hill
A NEW PORT PIRIE - TRANSFORMING THE FUTURE13
NYRSTAR
PORT PIRIE IS
A CORNERSTONE
OF THE UPPER
SPENCER GULF
REGION
Port Pirie not only provides a port for the Mid-North
region but with its backdrop of the Flinders Ranges
and the Gulf, Port Pirie is also a cultural and educational
hub for the region.
As a cornerstone employer, the Port Pirie Operation
has been associated with South Australia’s prosperity
for more than a century, closely linked to the
Broken Hill success story that established the State’s
fledgling economy.
– Nyrstar is a critical employer in the region.
Nyrstar directly employs 858 Full Time Equivalent (FTEs)
(including 133 contractors), which is approximately 17 per cent
of the working population.
Nyrstar indirectly supports employment of more than
2,500 people in the area.
– Nyrstar is a significant contributor to the
South Australian economy.
South Australia’s Upper
Spencer Gulf has a long
history of supporting
mining and advanced
manufacturing as
well as providing key
regional centres for
the rural community.
Directly & indirectly
employs more than
2,500
people
Wages over
27
AUD$
m
p.a.
Nyrstar’s value add contribution to South Australian
Gross State Product (GSP) is ~AUD$518 million p.a.
Contribution of AUD$1.6 billion to the value of the
South Australian economic output. This includes an average
value calculation of AUD$755 million of exports p.a.
Tax generated AUD $103 million.
– Nyrstar Australia is a significant contributor to
the Australian economy.
Nyrstar’s total Australian value add contribution to GSP of
AUD$1.3 billion p.a. (Port Pirie and Hobart)
Nyrstar’s Port Pirie and Hobart operations together contribute
AUD$10 billion to Australian Gross Domestic Product (GDP)
in NPY terms. Its direct and indirect GDP contribution is
~AUD$750 million p.a.
Nyrstar Australia contributes AUD$1.4 billion to
Australian exports.
1.6
AUD$
billion
contribution to value of
SA economic output
ALUE ADD
SAGSP
to
AUD$518 m
TAX
GENERATED
AUD$103m
Sources: ‘The economic contribution of Nyrstar’s Port Pirie operations on the South Australian economy (IMC Link, 2011)’, ‘Economic modelling
of Port Pirie (Deloitte Access Economics, 2011)’, ‘Socio Economic Considerations in Port Pirie (Department of Manufacturing, Innovation, Trade,
Resources and Energy, 2012)’.
A NEW PORT PIRIE - TRANSFORMING THE FUTURE15
Nyrstar plays a key
role contributing to
and improving social
outcomes within the
Port Pirie community.
Some local Port Pirie perspectives; (clockwise from top left):
“Nyrstar as the most significant employer
in Port Pirie provides our supported
employment program with much needed
work for our employees. Our partnership
with Nyrstar enables us to change
the lives of people with disability and
disadvantage in the Port Pirie community.”
Recognising Nyrstar’s
responsibility to the community,
Nyrstar provides direct and indirect
support through a wide range
of programs and initiatives.
The primary focus is to provide support and
manage initiatives that make a direct impact on
reducing blood lead levels in the community.
Specifically to date these include sponsorships for
breakfast programs within schools and child care
centres, assistance to community support agencies
such as Uniting Care Wesley, donations to local
organisations, community events, and educational
health promotions targeting young children
and those disadvantaged in the community.
Nyrstar is also a proud supporter of and contributor
to, organisations that focus on supporting those with
disabilities in the community helping to deliver a better
quality of life.
Mike Curtin, Manager Northern Business Services, Bedford
“With sponsorship from Nyrstar we have
been able to show exhibitions from major
Australian galleries... providing our
community with opportunities that
add to the quality of their lives.”
Kirstie Jamieson, Mid North & Southern Flinders
Arts Officer/Gallery Director
“Through our Greening programs we’ve
planted in excess of 300,000 trees,
plants and shrubs across the site
and city surroundings.”
Kerry Backstrom, Environment Team, Nyrstar
“We want the best for our children and
grandchildren and with Nyrstar’s
support that’s now possible. It’s about
their future and our future.”
Serena Irving, Pirie West Breakfast Program
IN EXCESS OF
4
AUD$
million
ON COMMUNITY
PROGRAMMES
Nyrstar budget allocation on Community Programs 2007 - 2012
A NEW PORT PIRIE - TRANSFORMING THE FUTURE17
“Uniting Care Wesley has valued its support
from Nyrstar. We have worked together on
projects that have benefitted the interests
of disadvantaged families in our community.
Specifically Nyrstar has provided support in
setting up new housing for families with young
children who are on low incomes and provided
support in accessing whitegoods. Nyrstar
has been a valuable partner in our work.
“The Smelters Ball sponsored by Nyrstar provided
us with significant funding to improve the lives
of children in our residential homes, supporting
about 30 children each year who are removed
from families but have no other place to go.
“The AUD$50,000 raised at the Smelter’s Ball
in 2011 and donated to this project was an
overwhelming gesture that will have very
real impacts to disadvantaged children
at risk in our community.
“Additionally the AUD$63,000 raised at the
2012 Smelters Ball for the establishment of a
community food hub will further significantly
improve the lives of these families.”
Andrew Cockington, Manager Community and Family Services,
Uniting Care Wesley Port Pirie
“The Port Pirie Child Care Centre works with Nyrstar
to improve the health of children and reduce the
lead levels in children from birth to 4 years.
“Nyrstar’s support to the Port Pirie Child Care Centre
is vital. As a centre that offers care to children
that come from a variety of backgrounds, many
of which are disadvantaged, Nyrstar’s invaluable
assistance enables us to provide those children
with a structured support base which includes
daily healthy nutritional meals that assists to
significantly improve their quality of life.”
Sarah Wiskar, Director Port Pirie Child Care Centre
Port Pirie Smelter
For more information visit
www.portpirietransformation.com
Nyrstar is an integrated mining and metals
business, with market leading positions
in zinc and lead, and growing positions in
other base and precious metals; essential
resources that are fuelling the rapid
urbanisation and industrialisation of
our changing world. Nyrstar has mining,
smelting and other operations located
in Europe, the Americas, China and
Australia and employs over 7,000 people.