$200 million package announced for Bell Bay Aluminium smelter

The federal and state governments in Australia have collaborated to announce a $200 million support package for the Bell Bay Aluminium smelter in Tasmania. This funding aims to secure the smelter's future and maintain Australia's aluminum production capability. The smelter, which employs 550 people, had faced uncertainty due to ongoing power price negotiations between its owner, Rio Tinto, and Hydro Tasmania.

The state government confirmed that the smelter's owner and the power company had reached a five-year power deal, eliminating the risk of the smelter shutting down. The $200 million package is split evenly between the Commonwealth and the state government, and is separate from the power deal. It will be spread over five years to support the smelter, with spending caps set to protect taxpayer investments.

Federal Industry Minister Tim Ayres highlighted the complexity of the deal, with support levels dependent on aluminum prices, which are currently high. Prime Minister Anthony Albanese emphasized the importance of the funding to local manufacturing and reducing Australia's dependence on imports. The state government and Prime Minister praised the extraordinary level of cooperation between the state and federal governments in securing this deal for the smelter, its workforce, and Tasmania's future.