Federal and Tasmanian governments pledge A$200 million support package for Rio Tinto aluminium smelter
AI Market Summary
Australia's federal and Tasmanian governments will provide A$200m support tied to LME aluminium prices to keep Rio Tinto's Bell Bay smelter operating under a new five-year power deal with Hydro Tasmania. The package reduces near-term supply curtailment risk for a 190ktpa facility that consumes over 25% of Tasmania's electricity, reinforcing policy willingness to subsidize energy-intensive metals manufacturing.
Impact level
● Medium
Affected assets
NCCOALUMINIUM2USD/USDT-1.42%
AI Insight · NCCOALUMINIUM2USD/USDTAI Insight
● Neutral
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Australia’s federal government and the Tasmanian government said they will provide A$200 million in support for a Rio Tinto aluminium smelter to help safeguard 550 jobs. The move comes less than two months after the federal and NSW governments agreed to inject $2.5bn over 10 years into Rio Tinto’s Tomago Aluminium plant. The smelter had sought support through the federal $2bn Green Aluminium Production Credit scheme but was ruled ineligible. Rio Tinto’s underlying pretax earnings are made up of 56 per cent from iron ore and about 25 per cent from copper.
