Rio Tinto assures community it is 'committed' to smelter

Résumé détaillé

Rio Tinto says it will keep a minimum number of workers employed at a northern Tasmanian smelter until at least 2031, in return for a taxpayer-funded support package.

A Rio Tinto executive has visited Bell Bay Aluminium in northern Tasmania after a five-year power deal and a $200-million government support package were secured.

He told the ABC that if aluminium prices remain high, Rio Tinto may not require the entire $200m in support.

Asked if the business has a future beyond 2031, he said he hoped it would be there for "many more decades to come".

A Rio Tinto chief executive says the company will keep a minimum number of workers employed at a northern Tasmanian smelter until at least 2031 in return for a taxpayer-funded support package.

While Jérôme Pécresse did not say how many jobs were guaranteed, the ABC understands it is about 500.

Earlier this year, Hydro Tasmania and Rio Tinto were involved in protracted negotiations for a new power deal for the Bell Bay Aluminium smelter, south of George Town, with the state and federal governments becoming involved.

There were fears the 71-year-old smelter, which employs 550 and supports a further 1,200 jobs, would close if an agreement was not reached.

The region recently lost a major employer with the closure of the Liberty Bell Bay manganese alloy smelter in July, resulting in about 200 job losses.

But on October 1, three months before the current deal was due to expire, Prime Minister Anthony Albanese and federal Energy Minister Tim Ayres stood alongside state counterparts and announced a new power deal had been reached, alongside a support package of up to $200m.

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