Rio Tinto’s Bell Bay aluminium smelter secures five-year extension with $200m support
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Rio Tinto’s Bell Bay aluminium smelter in Tasmania has secured a five-year extension, with federal and state governments providing a USD 200 million support package to keep the facility operating until the end of 2031.
The agreement ends months of uncertainty over the smelter’s future, with its existing electricity supply agreement with Hydro Tasmania due to expire on December 31. Under the new arrangement, Hydro Tasmania will continue supplying power to Bell Bay through 2031, while government support will help maintain the smelter’s competitiveness.
Tasmanian Premier Jeremy Rockliff said, “The outcome we have today is the security of over 500 jobs at Bell Bay Aluminium.”
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Bell Bay produces around 190,000 tonnes of aluminium each year, most of which is exported for use in transport, construction, packaging and electrical manufacturing.
Rockliff said Bell Bay is expected to contribute around USD 5 billion to Tasmania’s economy over the next five years.
The smelter directly employs around 550 people, while Rio Tinto estimates another 1,200 jobs are indirectly linked to its operations. The facility also spends around USD 260 million annually across 180 suppliers.
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Rio Tinto is also expected to contribute around USD 1 billion over the same period through payments to TasPorts, TasNetworks, Hydro Tasmania and payroll tax.
The Bell Bay smelter has operated since 1955 and was the first aluminium smelter of its kind in the Southern Hemisphere.
Prime Minister Anthony Albanese said maintaining major industrial operations in Australia would support domestic manufacturing and reduce reliance on imports. “We need to ensure that in today’s uncertain world, we be less dependent upon imports and that we’re able to ensure that we manufacture things for domestic purposes, but also that we manufacture for export as well,” Albanese said, highlighting the importance of maintaining manufacturing capacity for both domestic use and exports.
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