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The Commonwealth and state governments say the future of the Bell Bay Aluminium smelter has been secured, with a power deal reached and a $200 financial package announced.
There's been a cloud hanging over Bell Bay Aluminium smelter, but the federal and state governments say its future is now strong. The federal and state governments have announced a jointly funded $200 million support package for the Bell Bay Aluminium smelter in Tasmania.
A cloud hung over the smelter's future amid ongoing power price negotiations, but the state government says a deal has now been reached on power prices, separate from the funding package. The $200 million will be spread over five years to "help secure Australia's ongoing aluminium production capability". The Australian and Tasmanian governments have announced a $200 million support package for the Bell Bay Aluminium smelter after months of uncertainty.
There were fears the smelter, which employs 550 people, would shut if a new deal was not reached before it expired at the end of the year. The government previously said the gap between what Rio was willing to pay, and what Hydro Tasmania wanted, was $60 million a year. It has not provided any details about the new deal beyond claiming it was "globally competitive" and the "lowest possible electricity price".
The state government said the $200 million support package, which is split evenly with the Commonwealth, was separate from the power deal and was about "securing the future" of the smelter.
"We want Australia to make more things here and support good well-paid jobs for Tasmania," he said. "That's why we're backing Bell Bay Aluminium, supporting hundreds of workers, their families and the region while boosting Australia's national sovereignty. "told it was not eligible.
It upped the pressure on the Australian government to contribute to the Bell Bay smelter in some way after the Commonwealth announced itPremier Jeremy Rockliff, who has been personally involved in the negotiations, said the package would "support hundreds of jobs at BBA, hundreds of associated supply chain jobs, support our economy and back Tasmanians".
"This investment also provides certainty for the supply chain, with many Tasmanian businesses having the confidence to invest, grow and do business,"Federal Industry Minister Tim Ayres said the Commonwealth was backing industry, workers and manufacturing, while a future plan is worked through. He said the joint investment "provides certainty for the workers, their families and the businesses that rely on its ongoing operations".
"The Bell Bay region has been facing difficult industrial circumstances, and the Commonwealth is backing in the Tasmanian government and Rio Tinto as they work through the future of the facility and the region. "
Smelter Aluminium Rio Tinto Rescue Package Federal Government Time Ayres Premier Jeremy Rockliff George Town Bell Bay Aluminium Smelter Hydro Tasmania
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