Attributable to Marghanita Johnson, CEO, Australian Aluminium Council
- Today’s announcement between the Tasmanian Government and Rio Tinto’s Bell Bay Aluminium to extend the power arrangements until December 2026 is a welcome stepping stone towards what will hopefully be a long term solution.
- This news will be welcomed by the employees and people of Tasmania who rely on the smelter for jobs, its local economic contribution, and the vital role it plays in the Tasmanian grid.
- Competitive energy is the critical foundation that enables Australian businesses to compete internationally – for aluminium smelters this is not optional — it is existential.
- The Green Aluminium Production Credit should be able to be applied to all four smelters in Australia, including Bell Bay Aluminium, recognising the unique circumstances facing each asset.
- Despite Australia’s world-class endowment of bauxite, a strong alumina refining base and proximity to Asian markets, the industry has been steadily losing ground over the past 15 years. Global competitors are expanding capacity with state backing, subsidised energy and strategic industrial policies, placing Australia at a clear disadvantage.
- Australia has relied on commercial cost structures and market-driven investment, leaving its producers exposed on an uneven playing field. It is now clear that market forces alone are not enough to sustain this sector in the face of state-backed competition. The aluminium industry is no longer competing against foreign companies but against foreign governments writing the rules to their own advantage.
- Unlike many international competitors, Australia’s refineries and smelters face volatile, market-linked energy prices. Without decisive action, Australia risks losing not just competitiveness but the foundation of its value-added industry – with significant economic and geostrategic consequences. The integrated aluminium sector needs urgent, coordinated action across energy, industry, environment, trade and resources policies so Australia can secure its role in global supply chains and continue to deliver significant economic and strategic benefits.
Additionally, a recently released 4 page report “Securing a Level Playing Field” outlines how Australia needs to navigate interventionist policies in the global aluminium sector. Content attributable to Marghanita Johnson. Securing a Level Playing Field
The Aluminium Council’s submission on the Green Aluminium Production Credit can be found here: GAPC Submission
