Tasmania locks in smelter only for five years with $40m subsidy
Tasmania will pay Rio Tinto $40 million yearly to keep Bell Bay operating only until the end of 2031.
The deal keeps 550 jobs at the smelter, and protects another 1,000 jobs across northern Tasmania. Taxpayers and electricity users will pay.
Consumers will face higher power bills while Rio Tinto gets the state's cheapest rate. Five years is short.
When the deal ends in 2031, the smelter will face the same pressure it faces today. Economist Saul Eslake has warned Tasmania needs real economic change, not short-term subsidies, to build a lasting future in the north.
- $40 million
- Annual subsidy
- 5 years until end of 2031
- Deal duration
- 550
- Direct jobs protected
- 1,000+
- Indirect jobs affected
Why it mattersWithout the deal, another major employer would close, hurting Tasmania's north after Liberty shut down. But the deal does not fix the underlying problem: an ageing, uncompetitive plant.
AustraliaTasmanian taxpayers will spend $40 million annually; electricity consumers across Tasmania will pay more; Bell Bay region employment remains fragile beyond 2031 without new industries.
✓ Claims checked against the source. checked 2 h ago
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