Rio Tinto secures Bell Bay aluminium smelter operations till 2031

By Reuters News

Oct 1 (Reuters) - Global miner Rio Tinto RIO.AX said on Thursday it has reached agreements with the Australian and Tasmanian governments to secure the ongoing operation of its Bell Bay Aluminium smelter in northern Tasmania through the end of 2031.

As part of the agreements, Hydro Tasmania will supply electricity to Bell Bay Aluminium until December 2031, while the Australian and Tasmanian governments will provide additional support to continue operations.

Bell Bay's current power supply arrangement with Hydro Tasmania ends on December 31, 2026, Rio said, adding that the additional support will help maintain the smelter's international competitiveness and its contribution to the Tasmanian economy.

The Bell Bay support package follows a series of government interventions to back energy-intensive metals and manufacturing assets.

In August, the Australian and New South Wales governments pledged A$2.5 billion to help secure power supply for Rio Tinto-backed Tomago Aluminium beyond 2028.

Bell Bay Aluminium, fully owned by Rio Tinto, began operating in 1955 and produces about 190,000 tonnes of aluminium a year.

The smelter has about 550 full-time employees and indirectly supports more than 1,200 jobs, while spending about A$260 million annually with 180 suppliers, Rio said.




($1 = 1.4401 Australian dollars)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.