Nyrstar out of Australia?

Nyrstar NV is the world's largest producer of zinc metal and alloys, and in addition, is one of the world's largest primary lead smelting and refining companies. The company produces other valuable by-products including copper, gold and indium, along with significant quantities of refined silver. In 2007 Nyrstar produced more than one million tonnes of zinc. Incorporated in Belgium and with its corporate offices in London (United Kingdom) and Balen (Belgium), Nyrstar has wholly-owned operations in Australia, Belgium, France, the Netherlands and the USA and joint ventures in Australia, China and France.

From Dow Jones: Global No. 1 zinc and lead producer Nyrstar (NYR.BT) could close its smelting operations at Port Pirie in South Australia state and Hobart, Tasmania if Australia's emissions trading plan goes ahead in its current form, Nyrstar Chief Operating Officer Greg McMillan said Thursday.

Under the plan, Australia's zinc and lead industry - unlike aluminum and steel - won't qualify for assistance to shield trade-exposed industries from increased costs.

"We cannot pass on higher costs because we produce globally traded products that are traded on the London Metal Exchange," McMillan said.

Nyrstar's two smelters generate A$2 billion in export revenues annually and employ 3,250 people directly and indirectly.

Australia's government seeks to start its emissions trading scheme from 2010. Copper and nickel smelting operations aren't covered by transitional assistance for the scheme either.

"The other issue is that of carbon leakage. The supply that would be cut here will be taken up by other countries with less stringent rules and will produce more carbon emissions," said McMillan, adding that Australia's lead and zinc smelters adhered to the highest environmental standards.

China's zinc smelters emit on average 6.8 metric tons of carbon dioxide per ton of zinc production compared with 2.6 tons of CO2 per ton of zinc in Australia, Nyrstar said in a statement released Wednesday.

"Although Nyrstar supports the Australian Government taking action on climate change, it believes that until all major emitters, including the U.S. and China, face similar carbon constraints and there is a level international playing field, Australian trade exposed industries, like zinc and lead smelters, will require assistance if they are to survive," it said.

Will Australian politicians chose to maintain the 3,250 jobs or will
they stick to the emission plan?