Bell Bay aluminium smelter faces closure – jobs, families and the local economy at risk

The Rio Tinto‑owned Bell Bay aluminium smelter in George Town, Tasmania, is on the brink of closure because its power agreement with state‑owned Hydro Tasmania ends at the end of this year.

Rio Tinto and Hydro Tasmania have been negotiating a new ten‑year power contract for more than two years, but they remain about $60 million a year apart – a $600 million gap over the life of the deal.

The plant currently employs more than 200 people directly and underpins over 200 other businesses in its supply chain, so a shutdown could mean hundreds of jobs disappearing from the region.

Former worker Dean Gibbons, who spent 40 years at the smelter, says the uncertainty has already led to three marriage break‑ups and forced him to take a series of odd jobs before securing permanent work in a warehouse.

Both the Tasmanian and federal governments are talking about possible bailouts, yet the smelter has not received any funding from the federal $2 billion green aluminium credit scheme that is set to start in two years.

Because the smelter is a cornerstone of the local economy, its loss would affect not only the workers but also their families and the many small businesses that rely on its continued operation.

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