Bell Bay aluminium plant faces shutdown, threatening George Town's economy
The Rio Tinto-owned Bell Bay aluminium smelter is at risk of closing as its power contract expires, sparking fears of a severe economic hit for George Town.
Bell Bay aluminium smelter, owned by Rio Tinto, is on the brink of closure after its existing power agreement with Hydro Tasmania ends, and negotiations for a long-term deal have failed to bridge a $60 million annual gap, amounting to $600 million over ten years. Community leaders and unions stress that the plant supports over 550 direct jobs and a network of more than 200 suppliers, any shutdown would trigger massive layoffs across the region.
The Tasmanian government has appealed for inclusion in a federal $2 billion green aluminium credit program, seeking a bailout similar to those granted to Rio Tinto facilities in other states. Federal Industry Minister Tim Ayres acknowledges engagement with both Rio Tinto and Tasmania but emphasizes the urgency of resolving the power purchase agreement. Experts note the strategic importance of domestic smelting capacity, though the public cost of a rescue remains uncertain. Former workers describe the town’s reliance on smelting jobs and warn that losing Bell Bay could cripple the local economy.
Why it matters
The plant’s closure could eliminate hundreds of jobs and destabilize the regional economy of northern Tasmania.
In this story
