Overview
- An in-principle 12-month electricity agreement between Hydro Tasmania and Rio Tinto-owned Bell Bay Aluminium will maintain operations while negotiations continue.
- The smelter’s expiring 10-year power contract was due to lapse on December 31, putting more than 500 jobs in northern Tasmania in doubt.
- Premier Jeremy Rockliff described the plant as a cornerstone of the state’s economy, as the government presses Canberra for support comparable to recent aid for other smelters.
- Energy Minister Nick Duigan said federal assistance is necessary for a sustainable pathway and expects Hydro Tasmania to provide a competitive, commercial price aligned with its charter.
- The Tasmanian Minerals, Manufacturing and Energy Council welcomed the agreement as buying time after years of difficult price talks and noted the smelter contributes about $700 million annually to the state economy.