Rio Tinto’s Australian Bell Bay Al plant risks closure

Market: Emissions, Metals
10/10/25

UK-Australian producer Rio Tinto may have to shut its 190,000 t/yr Bell Bay aluminium smelter in Tasmania in end-December when its current power supply contract comes to as it has not been able to negotiate a new contract yet.

The company has been negotiating a new power agreement with Hydro Tasmania so that they can continue operating the smelter till 2035, Bell Bay Aluminium's general manager Richard Curtis said to staff on 8 October. But, they have not been able to reach suitable terms yet, he added.

Rio Tinto declined to comment on the matter today.

The company has been seeking support from the state and federal governments as well, as the price gap between what Hydro Tasmania is offering and what Bell Bay Aluminium needs is too wide for the Tasmanian government to cover alone, the state's energy minister Nick Duigan said on 9 October.

Tasmania's state government has called on Australian federal authorities to support Bell Bay Aluminium through its A$2bn ($1.3bn) low-carbon aluminium production tax credit scheme. The state government has also requested that Bell Bay Aluminium be allowed to use the time-of-use accounting methods, which calculates emissions based on its intensity factors that vary with time.

Rio Tinto reported 351,701t of covered scope-1 CO2-equivelant (CO2e) emissions at Bell Bay Aluminium over the July 2023-June 2024 financial year, which is below its reported emissions baseline of 353,471t CO2e. The company received 1,770 Safeguard Mechanism Credits (SMCs) over the year.

Bell Bay Aluminium is not the only aluminium plant facing challenges. The New South Wales (NSW) and Australian federal governments are talking to Rio Tinto about potential energy cost support for its larger 600,000 t/yr Tomago smelter. An NSW government spokesperson declined to comment on the specifics of the discussions on 9 October.

US producer Alcoa also opted on 30 September to permanently shut its 2.2mn t/yr Kwinana alumina refinery because of age, high costs, market conditions, and bauxite grade issues.

The Australian government has pushed capital towards multiple metal processors over the last year. Global producer Glencore most recently secured a A$600mn ($394mn) support package for its Queensland copper operations on 8 October.

By Avinash Govind

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Rio Tinto’s Australian Bell Bay Al plant risks closure

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