Rio Tinto Bell Bay Aluminium secures $200m government bailout

The Australian federal and Tasmanian governments have announced a $200 million bailout to secure the future of Rio Tinto’s Bell Bay Aluminium smelter in northern Tasmania. The funding package follows protracted negotiations regarding a new electricity contract between Rio Tinto and state-owned Hydro Tasmania.

As part of the agreement, Hydro Tasmania and Rio Tinto have reached an in-principle deal for a five-year power contract. The Tasmanian government stated the deal provides the “lowest possible electricity price” and remains “globally competitive.”

The intervention is expected to protect 550 full-time positions at the facility and support approximately 1,200 indirect jobs within the regional supply chain. The smelter currently produces 190,000 tonnes of aluminium annually. This announcement follows a separate $2.5 billion support agreement for Rio Tinto’s Tomago Aluminium plant in New South Wales.