Bell Bay Aluminium has, in-principle, agreed a 12-month extension to their deal with Hydro Tasmania.
The future of the Rio Tinto-owned smelter based in northern Tasmania, was put in jeopardy as its 10-year power agreement was set to expire on 31 December, reported ABC.
In a statement on their website, the Australian Aluminium Council, said: “Today’s announcement between the Tasmanian Government and Rio Tinto’s Bell Bay Aluminium to extend the power arrangements until December 2026 is a welcome stepping stone towards what will hopefully be a long-term solution.
“This news will be welcomed by the employees and people of Tasmania who rely on the smelter for jobs, its local economic contribution, and the vital role it plays in the Tasmanian grid.”
Despite this, some believe there is still more to do to secure the future of the smelter, as the federal government has so far failed to guarantee that Bell Bay Aluminium will be included in the Green Aluminium Production Credit Scheme.
Michael Ferguson, Tasmanian assembly member for Bass, added: “Tasmania has done the right thing; we have invested in renewable energy, we’ve backed our workers, and we’ve fought to keep Bell Bay strong, but we can’t do it alone,
“It would be a perverse outcome if Australia’s greenest smelter was left out of a scheme designed to support green aluminium.”