Nyrstar to suspend Budel zinc operations in second half of January

LONDON (Reuters) - Nyrstar will suspend its Budel zinc smelting operations in the Netherlands in the second half of this month owing to high energy costs and market conditions, it said on Monday.

Nyrstar, which is wholly owned by trading and logistics company Trafigura, said it will put the operations on "care and maintenance", which stops production but continues maintenance so it can reopen in the future.

"This decision follows a thorough and extensive review and is a direct response to ongoing and projected high energy costs as well as deteriorating market conditions," Nyrstar said.

Budel was at disadvantage compared with other European operations because the Dutch government has halted support measures for energy-intensive industries, Nyrstar added.

"As a result, continued production at the Nyrstar Budel site is currently not economically viable," it added.

Budel's capacity is 315,000 metric tons a year, but the smelter has been operating on a flexible basis since the fourth quarter of 2021, the company said.

Last November Nyrstar said it would temporarily close two zinc mines in the U.S. state of Tennessee because of weak prices and inflation.

(Reporting by Eric Onstad; Editing by David Goodman)