The state and federal governments have announced a joint support package valued at up to two hundred million dollars over five years, to support the Bell Bay Aluminium smelter.
A five year power agreement has also been signed between owner Rio Tinto, and Hydro Tasmania.
It comes after months of negotiations between all parties.
It’s something the CEO of the Bell Bay Advanced Manufacturing Zone, Susie Bower, has been hoping for.
“A lot has happened in this community, particularly in the George Town, West Tamar and Launceston areas and for this news to come today it comes as a welcome relief,” she said.
It comes after a challenging few months.
“I’ve had that many people come up to me and ask are we going to be okay, is our family going to be okay. It’s very hard to have those conversations with people on the ground and look them in the eye and say it’s going to be okay and you’re not really sure that it is,” Ms Bower said.
“I can look them in the eye today and say yeah, it is definitely going to be okay.
“To have this happen today means that we can give that security to those businesses, and more importantly to the whole Tasmanian economy and every family that would have been impacted by this.”
Tasmanian Energy Minister Nick Duigan says the financial commitment from both the Rockliff and Albanese depends on the London Metal Exchange.
“When prices are high like they are now, there’s no level of support,” he said.
“Should over the course of the five years aluminium prices fall to levels where it makes it challenging for the smelter that’s when that support will kick in.
“It’s capped at a maximum of two hundred million dollars over the five year period but potentially on the basis of aluminium pricing it may not get anywhere near that.
“Indeed it may be zero dollars in a perfect world.”
For more details about the deal, you can listen to today’s special edition of iHeart Tassie here.
