Power deal inked to secure smelter’s short-term future
The near future of the Southern Hemisphere’s first aluminum smelter is more secure following the signing of the energy agreement.
Tasmania’s Bell Bay Aluminum, owned by Rio Tinto, has been under a cloud as talks over a new deal with state-owned electricity provider Hydro Tasmania have stalled.
More than 500 people work at the foundry in the north of the state; Its decade-long deal with Hydro was set to expire on December 31.
The state government said on Wednesday a 12-month agreement had been reached, allowing time to continue work on a long-term plan for the smelter.
“The furnace is a cornerstone of the Tasmanian economy,” Prime Minister Jeremy Rockliff said in a statement.
“We are doing everything we can to ensure the business continues to have a strong future in the state.
“It is important that all governments continue to work with Rio Tinto to secure the future of Bell Bay Aluminium, one of Australia’s greenest smelters.”
Mr Rockliff said his government would continue lobbying for the money in Canberra after hotlines were recently provided to many major industries.
The Australian and Queensland governments announced in October that they would provide $600 million in support over three years to the Mt Isa copper smelter and Townsville copper refinery.
Tasmanian Energy and Renewable Energy Minister Nick Duigan said federal government support was needed to provide Bell Bay Aluminum with a sustainable operating trajectory.
“It would be counterproductive from a federal funding regulatory standpoint to exclude the nation’s major green aluminum smelter,” he said.
Mr Duigan said he expected Hydro Tasmania to deliver a competitive, commercial energy price consistent with its obligations to prioritize jobs and the economy in Tasmania.
The smelter began operating in 1955 and exports more than 90 percent of its production, primarily to Southeast Asia, East Asia and India.
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