10 March 2015

Bell Bay Aluminium calls for support for deal on renewable energy target

Bell Bay Aluminium (BBA) is calling on all Federal MPs and Senators to reach an agreement on the Renewable Energy Target (RET), so that legislation to provide a 100% exemption for aluminium be can be implemented from January 1, 2015.

General Manager, Ray Mostogl said the continuation of RET costs must be absorbed by BBA at a time when the aluminium industry can least afford it and when many other Australian manufacturers have closed or are signalling their closure.

“RET costs BBA $8-10 million per annum. Since the RET scheme commenced in 2001, it has cost us around $48 million. Forecast RET costs for the next five years are $42 million if no change is made. Despite operating on predominantly renewable power since 1955, Bell Bay Aluminium receives no benefit for this under the RET.”

“Affordable energy is critical for aluminium smelters. Removing regulatory costs, such as the RET will help secure the long-term future of aluminium smelting in Australia and Tasmania.” said Mr Mostogl.

BBA directly employs 435 people and indirectly supports more than 1,000 jobs in Tasmania. The smelter contributes $690 million per annum to Tasmania's Gross State Product and in 2014 spent $216 million purchasing goods and services from 335 Tasmanian suppliers.

Background information:

  • Bell Bay Aluminium is located on the Tamar River near George Town in Northern Tasmania.
  • Annual production in 2014: Approximately 190,000 tonnes
  • Bell Bay Aluminium was the first aluminium smelter built in the Southern Hemisphere, commencing production in 1955 as a joint venture between the Commonwealth and Tasmanian Governments.
  • Bell Bay Aluminium celebrates 60 years of aluminium production in Tasmania in September 2015