The Port Pirie smelter owned by Nystar, is in danger of closing as it parent company Trafigura, reviews its loss making operations.
Nyrstar has written off its Australian smelting assets at Port Pirie and Hobart by more than half a billion US dollars, while a Mongolian fraud cost its parent more than $US1bn.
Now 1,300 jobs in its Port Pirie and Hobart operations are on the line.
This comes soon the state government forced the Whyalla Steelworks into administration after former owner GFG Alliance failed to pay tens of millions of dollars in royalty payments to the government and creditors.
Trafigura’s chief executive Richard Holtum said its Australian operations were “uneconomical” and under “strategic review”.
Trafigura has already put its hand out for government assistance, casting doubt on its future if taxpayer-funded help isn’t forthcoming.
The smelter processes and refines lead, silver, zinc fume, copper matte and by-products including sulphuric acid, according to Nyrstar.
The smelter has been in continuous operation since it was built in 1889.
Last week plans for a $750 million green hydrogen facility at the Port Pirie smelter had been shelved.
Of those 1,300 people, 800 workers and 200 contractors are employed in Port Pirie.
Australian Workers Union SA branch president Mick Hopgood said Nyrstar contacted him on Wednesday to tell him the review was taking place.