Tasmanian smelter closure fears grow as Rio Tinto power deal stalls

The future of Rio Tinto's Bell Bay aluminium smelter in George Town, Tasmania, is uncertain as a power deal expires at year's end, with locals fearing economic collapse if it closes. The federal government has not yet offered a bailout. Negotiations between Rio Tinto and Hydro Tasmania for a new 10-year agreement are stalled, with parties about $60 million apart annually. A closure would impact over 200 supply chain businesses, with one firm set to sack half its 80 workers. The Tasmanian government seeks federal funding from a $2 billion green aluminium scheme, though eligibility was initially denied. The nearby Liberty Bell Bay manganese smelter was liquidated in August, with a report citing insolvency and loaned funds.