Australia announces $200m support for Bell Bay plant — ABC News
The Australian and Tasmanian governments have announced a $200 million support package for the Bell Bay Aluminium smelter in Bell Bay. The funding is рассчитated for five years and, according to the authorities, is intended to help preserve aluminium production in the country. ABC News reports.
New electricity agreement
The funding package will be provided equally by the federal government and the Tasmanian authorities. It is separate from a new electricity agreement between the plant’s owner, Rio Tinto, and the state-owned energy company Hydro Tasmania.
Rio Tinto and Hydro Tasmania signed a five-year contract after lengthy negotiations over the electricity price. Previously, state authorities said the gap between the amount Rio Tinto was prepared to pay and the amount Hydro Tasmania sought to receive was $60 million per year. The terms of the new agreement were not disclosed, but the Tasmanian government described the electricity price as globally competitive and the lowest possible.
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Support for employment
Bell Bay Aluminium employs 550 people and is one of the largest electricity consumers in Tasmania’s power grid. Before the new agreement was reached, there were concerns that the plant could close if a new contract was not agreed before the current arrangement expired at the end of the year.
Tasmanian Premier Jeremy Rockliff said the investment would support plant workers, employment in supply chains, and the state’s economy. Federal Industry Minister Tim Ayres said the joint funding was intended to provide certainty for workers, their families, and businesses that depend on the plant’s operations.
