Nyrstar parent company Trafigura wants to partially nationalize zinc group
- Kris Vansanten
- Mar 26
- 2 min read
Updated: Apr 13
'Critical infrastructure and smelting capacity are a national security issue and therefore they need some kind of government ownership or significant government support,' argues Richard Holtum, the new CEO or Trafigura. And with this statement, he launches a strategic review of the former Nyrstar's smelting operations, including the Australian operations at Port Pirie, which came into the hands of Trafigura under an allegedly fraudulent restructuring.
Prior to this restructuring of Nyrstar by Trafigura in 2019, the Port Pirie smelter was seen as the future jewel in Nyrstar's crown. Just days after the restructuring was finally approved, the Port Pirie smelter was put into operation, and according to our analyses, over €100 million of cash was generated in recent years by processing mountains of valuable tailings, the cost of which had already been largely borne for accounting purposes by Nyrstar's former owners - the aggrieved minority shareholders. These thus saw the fruits of their years of investment in Port Pirie thrown into the lap of the new owner, Trafigura.
Now that market conditions seem to have changed, the gun is being changed shoulder, and it seems time to pass the till a second time by seeking a buyer for the assets. This while there is still a nullity claim due to a number of litigating minority shareholders on all the assets transferred during the restructuring in question, including the deliberate smelters.
This article is also particularly insightful because the CEO of Trafigura himself now confirms that Nyrstar's assets are an essential part of the Public Interest and national security of governments. Today, however, these assets are owned by a commodities trader who was convicted of corruption by Swiss courts as recently as early January this year. They are the ones who can now decide who the new owner will be.
We therefore hope that after years of inactivity under the Vivaldi government, the Belgian institutions (authorities, courts, public prosecutors and watchdogs) responsible for the proper functioning of our capital market and national interest will finally stand up and show moral ambition, determination and decisiveness to halt the consequences of the allegedly fraudulent restructuring in 2019 and save what remains to be saved. Today, Belgium potentially holds an important piece in the international geopolitical puzzle. A weakened Europe is desperate for it.
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