Bell Bay Aluminium Secured with $200 Million Government Support Package
The Australian and Tasmanian governments have announced a $200 million support package over five years to secure the future of the Bell Bay Aluminium smelter in Northern Tasmania.
The agreement, announced on 1 October, is expected to support 550 direct jobs at the smelter and around 1,000 additional jobs across the Northern Tasmanian supply chain. The smelter, owned and operated by Rio Tinto, has faced uncertainty over its future amid negotiations with state-owned electricity provider Hydro Tasmania over a new power agreement.
Under the new arrangement, Rio Tinto and Hydro Tasmania have agreed to a five-year commercial power deal, while the federal and Tasmanian governments will jointly provide the separate $200 million support package. The agreement is due to begin on 1 January 2027. The government support is linked to aluminium prices, with payments expected to increase when prices fall and reduce when prices are higher. The package is capped at $200 million over five years, with a maximum of $50 million in any one year, according to government statements.
Prime Minister Anthony Albanese said the agreement would support Australian manufacturing and jobs in Tasmania.
“We want Australia to make more things here and support good well-paid jobs for Tasmania.”
Tasmanian Premier Jeremy Rockliff said the agreement provided greater certainty for workers, businesses and the broader regional economy.The Bell Bay precinct has been identified by the Tasmanian Government as an important part of its Northern Economic Plan, with a focus on renewable energy, advanced manufacturing, exports and attracting new industrial investment. Bell Bay Aluminium is Australia’s oldest aluminium smelter and is a major industrial facility in Northern Tasmania. It uses more than a quarter of Tasmania’s electricity, according to the governments.
The agreement is also intended to provide a pathway for further investment in the region, with Rio Tinto confirming plans for capital investment to modernise the facility during the five-year agreement.
