Industry leaders urge Tasmanian and Australian governments to secure Bell Bay aluminium power deal
With a week left before its current power contract expires, Rio Tinto faces pressure from local business and community leaders to obtain a new electricity agreement for the Bell Bay Aluminium smelter.
Rio Tinto must finalize a new electricity contract for its Bell Bay Aluminium smelter within a week, as the one-year deal with Hydro Tasmania expires at the end of 2026. The smelter, a major employer of roughly 550 people and a key consumer of Tasmanian power, is at risk of closure if a new agreement is not reached. Thirteen industry and community leaders, including Bell Bay Advanced Manufacturing Zone chief Susie Bower and Tasmanian Minerals, Manufacturing and Energy Council chief Ray Mostogl, have sent open letters to Prime Minister Anthony Albanese and Premier Jeremy Rockliff urging a ten-year power arrangement.
Hydro Tasmania’s proposal is $60 million below Rio Tinto’s target, and state minister Jo Palmer says federal support, similar to that provided in New South Wales and Queensland, may be required. Federal Industry Minister Tim Ayres’ office emphasized the Tasmanian government’s control over low-cost renewable electricity and urged it to use all levers to aid its industrial base. The smelter produces about 190,000 tonnes of aluminium each year, making its continuity vital for the regional economy.
Why it matters
The smelter’s fate affects hundreds of jobs and the broader Tasmanian supply chain, making a power deal crucial for regional economic stability.
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