Arabic version: جورج تاون تخشى انهيار مصهر بيل باي
According to ABC News, George Town residents and industry groups fear the local economy could be devastated if Rio Tinto’s Bell Bay Aluminium smelter closes, following the liquidation of the nearby Liberty Bell Bay manganese smelter. The aluminium facility, beside the northern Tasmanian town, is negotiating a new power agreement with Hydro Tasmania as its current deal expires at the end of the year.
Rio Tinto and the state-owned power producer have been negotiating a 10-year agreement for more than two years. Tasmanian Energy Minister Nick Duigan told parliament the parties remain about $60 million a year apart, a $600 million difference across the proposed contract. They previously reached only a one-year bridging deal after state government intervention.
Bell Bay Advanced Manufacturing Zone representative Susie Bower said an agreement must be reached by the end of the month to provide certainty for workers and the community. She said the smelter employs 550 people and has more than 200 businesses in its supply chain. One local engineering firm has said it would immediately sack more than half of its 80 workers if the smelter shut.
The Tasmanian government has sought support through the federal government’s $2 billion green aluminium credit scheme, which is due to start in two years. Federal Industry Minister Tim Ayres said the government was engaged with Rio Tinto and Tasmania and felt urgency, while describing the power purchasing agreement as the immediate issue. He did not rule out intervention similar to support provided to Rio Tinto’s smelters in New South Wales and Queensland.
Concerns have intensified after Liberty Bell Bay was formally placed into liquidation in August. An EY report found it may have been operating while insolvent from May 2025 and had loaned $191 million to other GFG Alliance businesses, leaving limited cash resources. Former worker Dean Gibbons said the closure had taken a toll on former employees and urged governments to secure Bell Bay Aluminium’s future.
