AN AGREEMENT between the Tasmanian and Federal Governments to invest $200 million over five years to keep Rio Tinto’s Bell Bay Aluminium smelter has been applauded by TasPorts.
"This is good news for the smelter's workforce, for northern Tasmania and for everyone who works across the port," TasPorts CEO Captain Allan Gray said.
"Bell Bay Aluminium is central to trade through the port. The smelter relies on the port to bring in raw materials and move its product to export markets. That trade supports many local jobs beyond the smelter itself.
"When a major customer has economic certainty, it flows through the whole supply chain. It gives contractors and port users the confidence to plan with Bell Bay in mind."
The smelter was built in 1955 and was the first in the Southern Hemisphere. Bell Bay was chosen for its proximity to deep water for the import of bauxite and export of finished product, and the availability of cheap hydro-electric power. It produces about 190,000 tonnes of aluminium a year for domestic and overseas markets.
The smelter is responsible for the consumption of more than 25% of Tasmania’s electricity and that supply was secured under an earlier five-year deal with Hydro Tasmania for “the lowest possible electricity price”.
Under the agreement signed on Wednesday [30 September] the governments said the investment would support the facility’s 550 workers, their families and the 1,000 workers indirectly employed across Northern Tasmania, and strengthen national sovereignty while a future regional industrial strategy is developed.
“The Tasmanian Government’s Northern Economic Plan identifies Bell Bay as uniquely positioned to support the next phase of Northern Tasmania's economic development.
“As the region's leading industrial and clean energy precinct, Bell Bay can attract the investment, infrastructure and skilled workforce needed to establish a new generation of high-value businesses that complement Northern Tasmania's traditional strengths in manufacturing, resources and export-focused industries,” the governments said.
Prime minister Anthony Albanese said his government wants Australia “to make more things here and support good well-paid jobs for Tasmania”, while Tasmanian premier Jeremy Rockliff said the state had worked closely with the Federal Government and Rio to provide certainty for the supply chain, with many Tasmanian businesses having the confidence to invest, grow and do business.
“Our Northern Economic Plan highlights the central role the Bell Bay precinct will play in Northern Tasmania’s future growth, leveraging renewable energy, advanced manufacturing, export capability and strategic industrial land to attract investment and create jobs,” Mr Rockliff said.
At the end of July TasPorts said it was actively pursuing new opportunities for the port of Bell Bay and associated industrial area following confirmation no buyer has been found for the former Liberty Bell manganese smelter.
The immediate closure of the smelter was ordered by administrators after the collapse of an agreement with a consortium to take over the business. Liberty Bell, part of the troubled GFG Alliance empire of Sanjeev Gupta, collapsed into administration in March this year, despite the federal and state governments ploughing almost $30 million into its survival.
The Bell Bay Aluminium bail-out is the third by governments of Rio Tinto plants this year, with the Tomago smelter near Newcastle receiving $2.5 billion in August and the Boyne smelter at Gladstone $2 billion earlier.