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Aluminium Smelter's Future Secured in $200m Lifeline
The package includes a new five-year power deal and aims to protect 550 direct jobs, officials said.
On Thursday, the Tasmanian and federal governments announced a $200 million joint support package for Bell Bay Aluminium, securing the smelter's operations through 2031 alongside a new five-year power deal.
Negotiations stalled for months over a $60 million annual price gap between owner Rio Tinto and state-owned Hydro Tasmania, threatening closure of the smelter that consumes over 25 per cent of Tasmania's electricity.
State Energy Minister Nick Duigan confirmed the package secures 550 direct jobs in Northern Tasmania and generates $5 billion in economic activity over five years. He called the electricity price "globally competitive."
Prime Minister Anthony Albanese said the funding supports local manufacturing and national sovereignty, while Tasmanian Premier Jeremy Rockliff stated the investment provides "certainty for the supply chain" for regional businesses.
The Australian Aluminium Council welcomed the deal as "a new era dawning for Tasmania," while a future regional industry strategy remains in development to strengthen the nation's manufacturing base.