Source : Perth Now news
THE BELL BAY DEAL:
* The federal and Tasmanian governments announced a combined $200 million support package to the Bell Bay Aluminium smelter in northern Tasmania
* The smelter’s owner, mining giant Rio Tinto, had been in drawn-out negotiations with the state-owned power company Hydro Tasmania over a new power deal
* Bell Bay is the biggest energy consumer in the state. A nearby smelter had to close earlier in 2026 due to rising costs
* The gap between what Hydro Tasmania wanted from a deal and what Rio Tinto was willing to pay was about $60 million
* The bailout has allowed a five-year deal to be struck, which will keep the smelter running and about 500 people employed
* All parties had hoped for a 10-year deal, so there is still work to do to secure the smelter’s future
PREVIOUS GOVERNMENT BAILOUTS
* Rio Tinto-owned manufacturing facilities have been given almost $5 billion in government bailouts since the start of 2025
* The Tomago smelter, near Newcastle in NSW, received $2.5 billion from the federal and NSW state governments in August, under a 10-year deal – just over 50 per cent of the smelter is owned by Rio Tinto
* The company’s Boyne smelter, just outside Gladstone, Queensland, was handed a combined $2 billion from the federal and Queensland governments in March
* Separately, Whyalla steelworks in South Australia has been given almost $2.9 billion in joint government funding since 2025 – its blast furnace has not run since April and is beset with technical issues
