Why we're investing in Hobart's long-term smelting capabilities, writes Tim Ayres

To appreciate the value of something we might otherwise take for granted, we should first try to imagine life without it.

What would 20th century Hobart have seemed like without the smelting facility, which was initially established at Risdon?

The island state's industrial and supply chain linkages to the rest of Australia would have been weaker. Tasmania's - and Australia's - exports would have been noticeably reduced. There would have been fewer decent jobs and homes for working Tasmanians. A smaller contribution to Australia's production efforts in peace and war.

It has made a singularly foundational contribution to the stability and revenues of Tasmania's hydro power system, probably providing revenue in multiples of its capital costs over decades and delivering vital grid stability for the National Electricity Market today.

In its absence, Tasmania would have been less well-placed to take advantage of the opportunities of the 21st century, including the global race to reduce carbon emissions.

I've been keeping that counterfactual in mind as I engage with Australian and global businesses, workers and state and local government representatives on the future of Australia's smelting facilities.

Two weeks ago, I joined with the Tasmanian and South Australian governments to announce a $135m package to support investment in the Nyrstar smelting facilities in Hobart as well as Port Pirie, in South Australia.

The Nyrstar zinc refinery is an important part of Tasmania's industrial ecosystem. It is one of the largest zinc smelters in the world in terms of production volume. And it creates more than 550 good jobs for Tasmanians.

Zinc is useful for Australia's and the world's transition to a low carbon economy. It is an enabler of emerging technologies such as solar and wind power.

We are one of the largest exporters of refined zinc and lead globally.

Thanks to the future-focused investment of the three governments involved, Nyrstar's Hobart smelter will also explore the feasibility of processing and refining products like germanium and indium. These are critical minerals for global electronic and semiconductor supply chains, and Hobart should be right up that value chain given the resources and worker expertise it has on hand.

This smelter also produces critical byproducts including copper sulphate, sulphuric acid, gypsum and cadmium, which are going to be crucial for industry in the years to come. These byproducts contribute to fertilisers that enhance the carrying capacity of the land, and to materials that boost the productivity of Australia's manufacturing and construction sectors.

This is what the Albanese government's Future Made in Australia agenda is all about: sharing as widely as we can the economic and social benefits from the shift to a low-emissions economy and helping to secure Australia's domestic capacities in a fast-moving, more competitive geostrategic landscape.

The Albanese government is focused on the structural challenges putting pressure on Australian smelters. Global overcapacity and market manipulation make profitable and efficient Australian producers marginal.

To tackle these challenges in the national interest, Australian workers and industry, along with state and commonwealth governments, must work together in a constructive way.

Working together, we can strengthen the foundations of the industry, secure local jobs and back smelters like Nyrstar's Hobart facility to set themselves up for success in the industrial landscape of the next decade and beyond.