Rio Tinto gets $200M to secure Tasmanian smelter
- Rio Tinto secured $200 million in government funding to keep its Bell Bay aluminium smelter running until 2031.
- The funding safeguards roughly 550 jobs and operations at the northern Tasmanian facility.
- The multi-government deal aims to support the plant while Tasmania shifts its broader energy system.
Rio Tinto (ASX:RIO) secured a $200 million support package from the federal and Tasmanian governments to keep operating its Bell Bay aluminium smelter through to the end of 2031.
The funding deal follows extensive negotiations between the global miner and state-owned power provider Hydro Tasmania over a new electricity supply agreement.
"These agreements will provide Bell Bay Aluminium with an operating pathway through to 2031 and increased certainty for our people, suppliers and the northern Tasmanian community," said Rio Tinto Aluminium & Lithium CEO Jérôme Pécresse.
The company stated that Hydro Tasmania will continue providing electricity to the northern Tasmanian facility while governments offer extra financial support as the local energy grid evolves.
Following the announcement, the Rio Tinto share price was unchanged at $164.03.
Operating since 1955, the historic Bell Bay facility produces around 190,000 tonnes of aluminium each year.
The site remains a major regional employer, with approximately 550 staff members working on location.
