Dutch metals company Nyrstar has sold part of its future silver production to help fund the upgrade of its Port Pirie smelter.
Adelaide Now reports that the sale of euro 79m ($114m) worth of silver is the third and final part of Nyrstar’s funding package for the work on the 120-year-old South Australian facility.
The smelter is due to open in the first half of 2016 and most of the silver included in the financing package will be delivered from 2016 to 2019.
In all, the redevelopment will cost the company $514 million. The first component of the funding package, a capital raising was completed by Nyrstar last week.
Further funding will come from securities issued to third parties with a AAA credit rating guaranteed. These will be guaranteed by EFIC and backed by the South Australian Government.
The smelter will see significant upgrades to its efficiency and environmental friendliness. The South Australian Government will also carry out a 10-year, $50 million lead abatement program.