Nyrstar has launched a strategic review of its Budel zinc-smelting operations in the Netherlands amid rising costs and changes in government policy.
The Trafigura-owned company says the operation has come under increasing pressure in recent years as zinc smelters globally face challenging market conditions.
Nyrstar points to Chinese overcapacity, intense competition for feedstock, historically low treatment and refining charges, and elevated European energy costs as key pressures on the industry.
These challenges have been compounded at Budel by high total energy costs in the Netherlands and differences in competitive conditions compared with neighbouring countries, the company says.
Budel is the latest Nyrstar smelting operation to face mounting challenges. In Australia, its Port Pirie and Hobart sites have also faced financial difficulties, putting their futures under pressure.
‘Losing money every year’
“Nyrstar Budel faces significant pressure in terms of tough market conditions, elevated energy prices and historically low treatment and refining charges over a sustained period,” CEO Guido Janssen says.
He adds that the operation is “losing money every year” and that “conditions for next year look particularly difficult”.
Janssen points to a lack of government support as an additional challenge for the operation.
“The Dutch Government’s decision not to include provisions for grid cost mitigation for energy-intensive industries in its 2027 ‘Prinsjesdag’ budget has added to that pressure,” he says.
As a result, Nyrstar says Budel warrants a review given the current policy framework does not sufficiently address the structural energy-cost disadvantage it faces compared with neighbouring European markets.
The strategic review is expected to conclude by the end of 2026, with operations at Budel continuing as normal during the process.
Key zinc plant
Located at Budel-Dorplein in the southeastern Netherlands, the smelter has capacity to produce 315,000 tonnes of zinc annually.
The operation serves industrial centres across the Netherlands, as well as neighbouring Belgium, Germany, Luxembourg, and northern France.
Budel was placed on care and maintenance in January 2024 due to high energy costs before restarting in May of that year.
Write to Jackson Chen at Mining.com.au
Main Image: Nystar
