Rio Tinto, the Australian Government and the Tasmanian Government have agreed to ensure that the Bell Bay Aluminium smelter in northern Tasmania will remain operational until at least 31 December 2031.
The move follows commitments from both levels of government to provide additional assistance for the operation as Tasmania’s energy system changes.
Hydro Tasmania will continue supplying electricity to the smelter under the terms of the agreement.
Alongside ongoing energy provision, government support aims to help Bell Bay Aluminium maintain competitiveness in the international market and sustain its contribution to the regional economy.
Bell Bay Aluminium, which is wholly owned by Rio Tinto, began production in 1955 and is recognised as the first aluminium smelter in the Southern Hemisphere.
The facility has an output of around 190,000 tonnes per annum (tpa) of aluminium. It directly employs approximately 550 people and supports more than 1,200 additional jobs indirectly.
Rio Tinto Aluminium and Lithium CEO Jérôme Pécresse said: “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.
“Bell Bay Aluminium has been part of Tasmania’s heritage for 71 years, and we are proud of the jobs, exports and economic value it creates for the State.”
Rio Tinto’s Australian aluminium chain, spanning bauxite mines, alumina refineries and smelters, employs more than 5,000 people directly and supports thousands of additional livelihoods.
In a separate development, more than 6,500 people in Madagascar have brought a High Court claim in London against Rio Tinto over alleged contamination from its QIT Madagascar Minerals (QMM) mineral sands operation, reported Reuters.
The claim, led by law firm Leigh Day, states that acidic wastewater containing metals was released into lakes and rivers used by local communities, including for drinking and irrigation. More than 2,000 children are among the claimants.
Rio Tinto stated that it has been informed of the legal action but has not yet received detailed information about the claim.
QMM is 80% owned by Rio Tinto and produces ilmenite for titanium dioxide used in paint, food and toothpaste.
The claimants are requesting compensation and legal directives that would oblige Rio Tinto and QMM to repair the alleged environmental harm and stop additional pollution.