Global miner Rio Tinto (ASX: RIO) said on Thursday it has reached agreements with the Australian and Tasmanian governments to secure the ongoing operation of its Bell Bay Aluminium smelter in northern Tasmania through the end of 2031.
As part of the agreements, Hydro Tasmania will supply electricity to Bell Bay Aluminium until December 2031, while the Australian and Tasmanian governments will provide additional support to continue operations.
Bell Bay’s current power supply arrangement with Hydro Tasmania ends on December 31, 2026, Rio said, adding that the additional support will help maintain the smelter’s international competitiveness and its contribution to the Tasmanian economy.
The Bell Bay support package follows a series of government interventions to back energy-intensive metals and manufacturing assets.
In August, the Australian and New South Wales governments pledged A$2.5 billion to help secure power supply for Rio Tinto-backed Tomago Aluminium beyond 2028.
Bell Bay Aluminium, fully owned by Rio Tinto, began operating in 1955 and produces about 190,000 tonnes of aluminium a year.
The smelter has about 550 full-time employees and indirectly supports more than 1,200 jobs, while spending about A$260 million annually with 180 suppliers, Rio said.
($1 = 1.4401 Australian dollars)
(Reporting by Roshan Thomas in Bengaluru; Editing by Shilpi Majumdar)
