Bell Bay Aluminium, the Rio Tinto-owned smelter in northern Tasmania, has reached an in-principle agreement with Hydro Tasmania for a 12-month power contract extension.

The existing ten-year power deal will expire on December 31, putting the facility's future at risk. The Australian Aluminium Council called the extension, which runs until December 2026, a welcome stepping stone for the smelter's employees and the Tasmanian economy.

Despite this local win, concerns remain over the smelter’s long-term viability. A Tasmanian politician is pressing the federal government to ensure Bell Bay Aluminium is included in the new Green Aluminium Production Credit Scheme, arguing Australia’s greenest smelter should not be excluded from a program designed to support green aluminum production.