Around 550 jobs at Rio Tinto's Bell Bay aluminium smelter in Tasmania have been secured until 2031 under a new $200 million government support package, ending months of uncertainty for workers and local businesses, Nine.com.au reported.
The agreement between Rio Tinto and the federal and Tasmanian governments will keep the smelter operating for another five years, with Hydro Tasmania continuing to supply electricity until the end of 2031.
The smelter directly employs about 550 full-time workers, while a further 1,200 jobs are indirectly linked to the operation, according to Rio Tinto.
Five-year job security
Bell Bay's future had been uncertain ahead of the expiry of its existing electricity agreement with Hydro Tasmania on 31 December.
Under the new arrangement, the state and federal governments will provide additional financial support to help keep the aluminium operation internationally competitive, while Hydro Tasmania will continue its electricity supply.
Jeremy Rockliff, Tasmanian Premier said, “The outcome we have today is the security of over 500 jobs at Bell Bay Aluminium.”
$5bn economic contribution
The government-backed agreement is expected to support a wider network of jobs and businesses linked to the smelter.
Rockliff said Bell Bay was expected to contribute about $5 billion to Tasmania's economy over the next five years, while Rio Tinto would provide about $1 billion through payments to TasPorts, TasNetworks, Hydro Tasmania and payroll tax.
“If someone came to me and said, ‘Can we invest zero to $100 million over the next five years to secure a $5 billion economic value?’ I’d say, you beauty,” he said.
The smelter spends around $260 million each year across 180 suppliers, creating further economic activity beyond its direct workforce.
Manufacturing jobs retained
The Bell Bay smelter has operated since 1955 and was the first facility of its kind in the Southern Hemisphere. It currently produces around 190,000 tonnes of aluminium each year, most of which is exported.
Prime Minister Anthony Albanese said retaining major industrial operations would be important to Australia's efforts to strengthen domestic manufacturing and reduce dependence on imported products.
“I want to lead a country that makes things here,” he said.
“We need to ensure that in today’s uncertain world, we are less dependent upon imports and that we’re able to ensure that we manufacture things for domestic purposes, but also that we manufacture for export as well.”
The agreement provides a five-year operating horizon for Bell Bay, protecting hundreds of direct jobs while supporting thousands of additional roles connected to the smelter and its supply chain.