The Australian federal and Tasmanian governments have joined forces with Rio Tinto to save Northern Tasmania’s historic Bell Bay Aluminium smelter, committing AU$200 million over five years to keep the facility operating to the end of 2031.
The funding ends months of uncertainty over the smelter’s future. Rio Tinto had been in negotiations with state-owned power company Hydro Tasmania over a power deal.
The funding deal guarantees the livelihoods of 550 direct employees and safeguards more than 1,000 indirect jobs across the region.
As Australia’s oldest smelter, operating since 1955, and its greenest, Bell Bay produces around 190,000 tonnes of aluminium annually while utilising more than 25 per cent of Tasmania’s electricity.
Alongside the joint government funding package, Hydro Tasmania has locked in a power agreement to supply the facility with globally competitive electricity rates until December 31, 2031, bridging the gap when its existing power contract expires at the end of 2026.
The facility injects $AU260 million annually into local businesses and generates AU$5 billion in economic activity every five years.
Prime Minister Anthony Albanese noted the strategic importance of backing local industry to strengthen sovereign capability.
“We want Australia to make more things here and support good well-paid jobs for Tasmania,” Albanese said.
“That’s why we’re backing Bell Bay Aluminium – supporting hundreds of workers, their families and the region while boosting Australia’s national sovereignty.”
Tasmanian Premier Jeremy Rockliff said the agreement provides vital certainty for local supply chains, aligning directly with the state’s Northern Economic Plan to position Bell Bay as a premier clean energy and advanced manufacturing precinct.
Minister for Industry and Innovation Tim Ayres emphasised the government’s commitment to supporting regional Tasmania through difficult industrial transitions while a broader regional industrial strategy is developed.
Additionally, Minister for Energy and Renewables Nick Duigan confirmed the package complements the newly secured electricity arrangements with Hydro Tasmania.
Rio Tinto Aluminium & Lithium CEO Jérôme Pécresse welcomed the landmark decision, expressing gratitude to both governments, Hydro Tasmania, and the workforce for securing an ongoing operational pathway for the iconic Southern Hemisphere smelter.
“Bell Bay Aluminium has been part of Tasmania’s heritage for 71 years, and we are proud of the jobs, exports and economic value it creates for the state,” Pécresse said.
“With these agreements in place, we can continue to safely deliver high-quality aluminium products for our customers in Australia and around the world.”
