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Tasmanian aluminium smelter gets $200m lifeline

Hundreds of smelter workers can breathe a sigh of relief after a government funding package helped secure a five-year power deal, AAP reports.

The electricity contract for northern Tasmania’s Bell Bay Aluminium, one of Australia’s big four aluminium smelters, was due to expire at the end of 2026, and it had been at loggerheads with state-owned Hydro Tasmania for months over a new deal.

A $200m joint support package from the Tasmanian and federal governments announced on Thursday has soothed some concerns surrounding the future of the smelter, even though the parties were originally bargaining for a 10-year deal.

The support package secures the immediate future of the facility, the positions of its 550 workers, and 1,000 more workers indirectly employed across northern Tasmania for the next five years.

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