Five-year Bell Bay energy agreement protects jobs and strengthens Tasmania’s industrial future

October 1, 2026

The Tasmanian Minerals, Manufacturing and Energy Council (TMEC) congratulates Bell Bay Aluminium and Hydro Tasmania on securing a new five-year electricity supply agreement, providing greater certainty for the smelter, its workforce and the businesses that support its operations.

TMEC CEO Ray Mostogl said the agreement was an important outcome for Tasmania’s industrial economy.

“Securing this agreement protects more than the jobs within the smelter. It supports employment across the engineering, maintenance, transport and other service businesses that depend on Bell Bay Aluminium,” Mr Mostogl said.

Mr Mostogl said the five-year agreement recognised the realities of an energy market undergoing significant change.

“The energy transition continues to create uncertainty around future electricity supply, infrastructure and pricing, making long-term contracts challenging for both producers and major industrial customers.

“Against that background, this agreement appears to be a good fit. It provides a practical period of certainty while the energy market continues to evolve.”

TMEC also welcomed the Federal and Tasmanian governments’ support package, highlighting its primary role as downside protection against a significant fall in aluminium prices.

“The distinction is important: the package provides a safety net if aluminium prices fall to levels that would otherwise make the operation unviable,” Mr Mostogl said.

“If aluminium prices support commercially viable operations, that support is not drawn upon. The package protects against adverse market conditions while allowing the business to stand on its own when conditions are favourable.

“This approach recognises the lasting value of Tasmania’s industrial assets, skilled workforce and supply chains, and the importance of preserving them through commodity market cycles.

“We congratulate Bell Bay Aluminium, Hydro Tasmania and both governments on reaching an outcome that supports continued production and greater confidence for workers, suppliers and the wider community.”

Media contact: Ray Mostogl CEO TMEC ceo@tmec.com.au +409 124 710