PERTH (miningweekly.com) – Diversified miner Rio Tinto will partner with the Tasmanian government to jointly investigate how the Bell Bay aluminium smelter’s manufacturing capability and electricity demand could support the development of new industries and renewable industry in the region.

Under a memorandum of understanding (MoU) Rio will work to secure the long-term future of its Bell Bay aluminium operations beyond 2025 which is when its current energy contract is due to expire as it pursues the decarbonisation of its smelters and examines longer-term investment options.

The MoU includes investigating options for future investment to secure the competitiveness of the Bell Bay smelter and potential new industrial opportunities that will create even more local jobs and an economic boost to our state while encouraging the creation, expansion and uptake of innovative technologies.

Rio has also committed to look at how it could further decarbonise Bell Bay Aluminium and investigate options for future investment to secure the competitiveness of the smelter.

“This MoU is a strong demonstration of our shared commitment to Tasmania’s economic and industrial future and reinforces the State’s renewable energy credentials,” said Tasmanian Premier Peter Gutwein.

“Rio Tinto has been a figurehead of local industry here for some 67 years, directly employing more than 500 Tasmanians and more than 700 indirectly, and this agreement reaffirms Rio Tinto’s long-term commitment to our state.”

Rio CEO Jakob Stausholm said aluminium was essential for the global transition to a low-carbon economy, and the company was excited about the contribution its Bell Bay smelter could make both towards this transition and to the region’s future.

“We want to help ensure a strong and vibrant future for Bell Bay, where we have been part of the community for well over half a century and where we are actively working with the Tasmanian government on a shared vision for the future.”

Bell Bay aluminium GM Shona Markham said the operation had been an important part of George Town and the northern Tasmanian economy for nearly 70 years.

“Today’s announcement is exciting news for our 514 direct employees, and the hundreds of other Tasmanians and Tasmanian businesses who work with us. It is a strong endorsement that Rio Tinto and the Tasmanian government see a positive and sustainable future for Bell Bay beyond 2025.”