Business leaders urge governments to act as smelter power deadline looms
With just one week until Rio Tinto's deadline for a power deal for its Bell Bay Aluminium smelter, business and community leaders are calling on the state and federal governments to act to secure the smelter's future.
As the deadline for a new power deal with its Bell Bay Aluminium smelter in Northern Tasmania approaches, industry and community leaders have written to the Prime Minister and the Tasmanian Premier urging urgent action to secure the smelter's future. The one-year power deal Rio Tinto signed last year is set to expire at the end of 2026.
The smelter directly employs around 550 people and is a major contributor to Tasmania's power grid. Last year, Rio Tinto signed a one-year power deal with Hydro Tasmania, which is due to expire at the end of the year. Federal MP Jess Teesdale stated that there is a high risk of the smelter closing if a new deal is not secured by the end of this month.
State-owned power company Hydro Tasmania has been negotiating a new power deal with Rio Tinto, offering $60 million less than what Hydro Tasmania is asking for. Despite this, 13 northern Tasmanian industry and community leaders have called for the federal and state governments to act urgently to secure the smelter's future. They have urged for a new 10-year power agreement to be signed as soon as possible.
The Bell Bay Aluminium smelter produces approximately 190,000 tonnes of aluminium annually, making it a significant economic contributor to the region.
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