Bell Bay Aluminium gets a five-year lifeline
The Prime Minister, Anthony Albanese, announced a five-year guarantee that will keep the Bell Bay Aluminium smelter operating through to the end of 2031. The announcement on 1 October 2026 was made together with the Tasmanian Government, led by Premier Jeremy Rockliff. It includes a $200 million joint support package from the federal and Tasmanian governments, and a five-year power agreement between Hydro Tasmania and Rio Tinto, the smelter’s owner. Reports of the announcement do not say how the $200 million is split between the two governments. The Prime Minister described the arrangement as “A five year guarantee and further discussions on a future for Bell Bay.”
About 1,550 jobs ride on Bell Bay Aluminium
The agreement secures roughly 550 direct positions at the Bell Bay Aluminium facility and approximately 1,000 indirect roles spread across Northern Tasmania. The Prime Minister of Australia highlighted “the security of over 500 jobs at Bell Bay Aluminium, but also the thousand” indirect workers who depend on the smelter’s operations.
A power deal that buys time to the end of 2031
The guarantee was announced on 1 October 2026 and runs through to the end of 2031. It follows the smelter’s previous power contract, which was due to expire at the end of 2026. Rio Tinto and Hydro Tasmania had been negotiating a 10-year deal, but the agreement announced is for five years, with further discussions to follow on the longer-term future for Bell Bay.
Relief for Northern Tasmania, with the long-term future still open
For workers and families in Bell Bay and Northern Tasmania, the five-year commitment means the smelter is set to keep operating through to the end of 2031. The Australian Aluminium Council says the facility contributes more than $250 million a year to the Tasmanian economy, and that the combined arrangements are expected to generate about $5 billion in economic activity over five years. The smelter produces about 190,000 tonnes of aluminium a year, mostly for export, and uses more than a quarter of Tasmania’s electricity. The price Rio Tinto will pay for power under the new deal has not been disclosed.
Earlier NewsCop coverage: Tomago smelter may stay open beyond 2028 as Canberra steps in to secure new power deal (December 2025) and PM’s news of a $2bn green aluminium production credit receives a warm welcome (January 2025)
General information only, not legal advice. Check the official source before acting.
Further reporting: The Nightly and Australian Manufacturing.
Source: Prime Minister of Australia. Licence: CC BY 4.0.
Prime Minister of Australia
