Compelling case for Port Pirie smelter redevelopment, Nyrstar says. Nyrstar lead, zinc, silver and gold smelter at Port Pirie. Image supplied by Nyrstar. TRANSFORMING the Port Pirie smelter presents a "unique and compelling business case" for owner Nyrstar, the metal manufacturing company says. A key strategic review conducted by the company has determined the 270 million Euro ($390 million) rehabilitation plan for the smelter is technologically, environmentally and financially feasible. The review clears a major hurdle on the path for the Belgian/Swiss company's board to make a final decision on the project in the first quarter of next year. "The redevelopment of the Port Pirie primary lead smelter (South Australia) into an advanced metals recovery and refining facility is expected to fundamentally transform the site's operating and business model," Nyrstar said in an announcement to the Brussels stock exchange last night. The milestone will be welcomed by the Upper Spencer Gulf business community. The smelter employs more than 700 people directly and about 130 contractors - representing about 15 per cent of the town's workforce. Nyrstar began a thorough review of its worldwide operations last year, including the Port Pirie lead smelter and its global zinc assets. "The smelting strategic review systematically challenged how Nyrstar views and operates its smelters and the smelting network," it said. Led by a dedicated project team of internal and external multi-disciplinary professionals, thousands of scenarios were modelled using different technologies, feed mixes, macroeconomic parameters and capacities to arrive at a final transformation blueprint. The blueprint involves changing Port Pirie into a hi-tech plant capable of processing several different metals and vastly improving its environmental footprint. The review found the redevelopment would result in a significant reduction in the lead content of air emissions from the plant. It would also lead to higher margins being earned "on every unit of metal produced." The Euro 270 million investment would be lucrative with Nyrstar expecting to make an after-tax return of 25-30 per cent on its internal books. The review's estimate is Euro 10 million less than earlier expected but $40 million more in Australian terms because of foreign exchange fluctuations. Nyrstar brokered an innovative funding deal for Port Pirie last December. It would seek Euro 120 million from third party investors in a package underwritten by a Federal Government agency, forward sell Euro 80 million of silver and chip in Euro 80 million itself. The SA Government contributed $5 million to the feasibility study and has steered through legislation giving regulatory certainty to the project. As part of its smelting transformation, Nyrstar would invest another Euro 280 million spread over 25 projects around the globe to improve total zinc production.