The future of the Bell Bay industrial precinct and the hundreds of jobs it supports are under threat from two separate, but equally critical, economic challenges.
The most significant immediate risk is at Bell Bay Aluminium, the state’s largest industrial electricity consumer, which has failed to secure a new power contract with Hydro Tasmania. This commercial standoff, which comes ahead of the contract’s December expiry, has led to a political dispute with the state Liberal Government urging the federal Labor Government to intervene and confirm eligibility for green manufacturing credits.
The second related issue involves the Liberty Bell Bay manganese ore operation (owned by the Gupta Family Group Alliance). Despite receiving a $20 million loan-funded shipment of manganese ore, operations at the facility have still not restarted. This failure to meet loan conditions has drawn condemnation from the Labor, who are demanding that the government compel GFG to provide a clear long-term plan for the facility and its 250 workers.
Together, these uncertainties across the precinct underscore a broader crisis regarding industrial energy stability and corporate accountability in Tasmania’s economy.
Media release – Janie Finlay MHA, Deputy Labor Leader, Shadow Minister for Energy & Renewables – 11 October 2025
Government must demand clarity and accountability from GFG
The State Government’s recent comments about GFG Alliance’s failure to meet the conditions of its $20 million loan are incredibly concerning, especially for the workforce and their families who are depending on the future of Liberty Bell Bay.
We welcomed the government’s decision to step in with a loan to secure ore supply, because it was about keeping people in work.
But now that the shipment has arrived and operations still haven’t restarted, it’s clear we need much stronger accountability from GFG.
The Liberal Government must step up and demand that GFG urgently outline a clear plan for restarting operations and securing the future of Liberty Bell Bay.
The 250 workers and their families deserve to know what comes next. The George Town community deserve answers and a clear path forward.
Our major industrials are vital to our energy system and play a key role in Tasmania’s economy – not only as significant employers but as drivers of regional development.
Labor has been listening to the workers and the community and we’ll continue pushing for long-term certainty and stability. It’s time for the Liberal Government and GFG to step up.
Media release – Janie Finlay MHA, Deputy Labor Leader, Shadow Minister for Energy & Renewables – 9 October 2025
Liberal Government asleep at the wheel on energy
The fact that Bell Bay Aluminium still hasn’t been able to secure a power contract with Hydro is yet more proof that you can’t trust this Liberal Government to put Tasmanians first and act in the state’s best interests.
With almost 550 workers on site, Bell Bay Aluminium is a critical employer, with an enormous flow-on impact to the Tasmanian economy.
This is not about federal policy, it’s about the basics of governing – planning ahead, negotiating in good faith and securing jobs. Tasmanians can see through the government’s empty statements – they’ve known for years that this power contract needed to be negotiated, yet they have done nothing.
Their inaction is inexcusable. Just like the Spirits and the budget, for everything this Government does, or doesn’t do – it is all last minute – when it’s too late. Nothing is ever planned, nothing is ever maintained, and nothing is ever under control.
The state government can’t use its budget mess as an excuse to delay action.
Tasmania owns our energy assets, giving the Government direct levers to pull to support our state’s economic interest.
Our Ministers have a responsibility to make sure our GBE’s act for Tasmania first, but they rarely do. This isn’t about creating value for Hydro, it’s about Hydro acting for Tasmania.
If just one major industrial falls over, there could be a catastrophic domino effect for Tasmanian jobs and the economy which will be extremely difficult to recover from.
Like usual, this Liberal Government has been caught asleep at the wheel, which is why they can’t be trusted.
Media release – Janie Finlay MHA, Deputy Labor Leader, Shadow Minister for Energy & Renewables – 5 October 2025
Liberty Bell Bay needs long-term certainty, not just short-term fixes
With a critical, loan-funded shipment of ore now at Liberty Bell Bay, Tasmanian Labor is calling for all parties involved not to lose sight of the urgent need to secure the long-term future of the smelter and the 250 Tasmanian jobs that depend on it.
While the State Government’s loan to secure a new shipment of manganese ore keep the smelter operating was welcome, there is still ongoing uncertainty around supply of materials and the financial viability of the site under its current ownership, GFG Group.
The State Government and GFG Group must step up and provide the leadership needed to secure Liberty Bell Bay’s future. Liberty’s 250 workers and their families deserve a long-term plan that delivers lasting certainty.
The loan might get the smelter through the immediate challenge, but without decisive action, the risk of uncertainty will continue to haunt the workers and their families, as well as the broader economy of the George Town region.
Tasmanian Labor has been listening to the workers, and we will continue to advocate strongly for them. Later this month, Labor Leader Josh Willie and I will be raising the issue in Canberra when we meet with our federal colleagues.
Liberty Bell Bay is a critically important operation for Tasmania’s economy and our state’s energy network. It’s time for a long-term plan to be put on the table, before the situation with GFG Group unravels again.
Media release – Nick Duigan MLC, Minister for Energy and Renewables; Felix Ellis MHA, Minister for Business, Industry and Resources – 9 October 2025
Urgent action needed on Bell Bay
The Tasmanian Government has again urged the Federal Labor Government to intervene to ensure the sustainability of Bell Bay Aluminium.
Minister for Energy and Renewables, Nick Duigan, said the smelter is a cornerstone of Tasmania’s economy, directly employing over 600 people and supporting hundreds more through a supply chain of almost 300 local businesses.
“Bell Bay Aluminium contributes significantly to Tasmania’s economy, accounting for more than 10 per cent of the state’s total goods exports.
“I am pleased that Hydro Tasmania has been working with Bell Bay Aluminium on different approaches in the energy supply contract that seeks to find value for both parties.
“The Government expects Hydro to do what it can to put the Tasmanian economy and jobs first, consistent with its new Charter.
“The gap between what Hydro Tasmania is currently offering and what Bell Bay Aluminium needs is not something the Tasmanian taxpayer can fund alone.
“It is important all governments work to together to secure the future of the Bell Bay industrial precinct and Bell Bay Aluminium, one of Australia’s greenest smelters.”
Minister for Business, Industry and Resources, Felix Ellis said there was uncertainty over the smelter’s eligibility to receive support through the Federal Government’s Green Aluminium Production Credit.
“Tasmania should not be penalised for already producing green aluminium.
“Bell Bay Aluminium is a key part of Australia’s low emissions manufacturing future and deserves the same support as mainland smelters.
“Despite our Government seeking assurances from the Prime Minister that Bell Bay Aluminium would be eligible on multiple occasions, no response has been received.”
Minister Ellis has spoken directly to Federal Labor Member for Bass, Jess Teesdale, and called on Tasmanian Labor members to help make Tasmania’s voice heard.
“It is disappointing that Tasmania’s Federal Labor members have been missing in action on Bell Bay.
“We urge our Labor colleagues in Canberra to take a Team Tasmania approach and intervene.
“The risk of the smelter’s closure cannot be underestimated and this would have profound economic and social consequences for Tasmania.
“Keeping the smelter open is in the national interest, but Tasmania cannot do it alone.
“We need to work together on this. We need the federal government to work with us.
“The Albanese Government must recognise that Tasmanian industry deserves its fair share.”
The Tasmanian Government has called on the Federal Government to immediately:
Confirm Bell Bay Aluminium’s eligibility for the Green Aluminium Production Credit scheme, announced by the Federal Government in January; and ensure accurate recognition of Tasmania’s clean energy advantage through time-of-use emissions accounting.
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