Bell Bay smelter jobs cut

The struggling Bell Bay Aluminium smelter will cut 18 jobs as it continues to face "extremely challenging" market conditions.

General manager Ray Mostogl said the decision followed a streamlining of work on site that had resulted in increased efficiencies and cost savings in the maintenance area.

Six of the roles being reduced are currently vacant. Employees in affected positions will be offered other roles or redundancies.

"Aluminium prices remain very low and we are working with employees, contractors and suppliers to identify efficiencies and cost savings to help make the smelter viable," he said.

The cuts come despite the smelter achieving a record production level in 2012.

The Bell Bay smelter is part of Pacific Aluminium group which has been put on the market by Rio Tinto.

The smelter lost $4.5 million in the 2011 year - the last year the company reported the Bell Bay smelter's result to ASIC.

Mr Mostogl said the recent easing of exchange rates had provided some relief, but the more significant decline in aluminium prices required the smelter to continue increasing efficiency and reducing costs.

"Bell Bay Aluminium has worked co-operatively with employees, contractors, suppliers, and local industry groups to achieve its best ever safety performance, record production levels and significant cost savings during the past 12 months," Mr Mostogl said.

Last year the smelter had about 580 employees.