Billionaire's Tasmanian trainwreck has broken workers and marriages
Locals fear the closure of another smelter in Tasmania will be disastrous for the economy as anger brews over the federal government's failure to offer a bailout.
The closure of the Bell Bay aluminium smelter in northern Tasmania has left the town of George Town in economic turmoil, with fears that the nearby Rio Tinto-owned smelter could follow suit. The smelter's power deal with Hydro Tasmania expires at the end of the year, and community members are frustrated that the same federal government bailouts offered to smelters in New South Wales and Queensland are not yet available in Tasmania.
With over 550 jobs at risk, local unions and industry groups are urgently fighting to keep the smelter operational. Rio Tinto and Hydro Tasmania have been negotiating a new 10-year power agreement for the facility for over two years, but have yet to reach a deal, with the two parties currently $60 million a year apart. Industry group Bell Bay Advanced Manufacturing Zone says a deal must be struck by the end of the month to provide certainty to workers and the community.
A collapse of the smelter would have a significant impact on the town's economy and supply chain, potentially leading to the loss of over 550 jobs and the closure of numerous businesses. The Tasmanian government has been pushing for the smelter to receive funding from the federal government's $2 billion green aluminium credit scheme, and is currently in talks with federal Industry Minister Tim Ayres to secure bailout funding.
Brief written by urgent.news from ABC News AU's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
