Article
Boyer Mill Power Standoff Resolved After Negotiations
The Boyer paper mill’s near-death experience with Aurora Energy highlights the precarious balance between commercial imperatives and economic survival in Tasmania’s manufacturing sector. A dispute over a $7 million bond payment threatened to close Australia’s last remaining paper mill and eliminate 310 direct jobs, along with approximately 1,000 indirect positions.
David Marriner’s passionate radio interview on ABC Mornings 13 October painted a stark picture of a business owner feeling held to ransom by seemingly unreasonable demands. His frustration was palpable. Aurora Energy wanted $7 million upfront to secure power connection as the mill transitions from coal-fired boilers to full electrification—a move that would eliminate 88,000 tonnes of coal consumption and reduce CO₂ emissions by 170,000 tonnes annually. Marriner offered a compromise of $2.5 million with fortnightly rather than monthly payments, only to have it rejected within minutes.
The stakes extended far beyond corporate negotiations.
Marriner emphasised the mill’s $180 million annual economic contribution and his commitment to workers he meets with every six to eight weeks—a stark contrast to the previous owner’s two meetings in 25 years. His argument was simple, why demand a bond that could sink the business when the mill pays approximately $4 million monthly in power costs, representing a guaranteed long-term revenue stream?
The political responses that followed reveal the states energy policy tensions. Whilst the Liberal government welcomed the eventual agreement as balancing Aurora’s commercial responsibilities with Boyer’s viability, Labor’s shadow minister criticised the last-minute brinkmanship that created unnecessary uncertainty. The resolution preserved jobs and allowed the federally-backed electrification project to proceed, but the episode exposed fundamental questions about how Tasmania manages its government-owned energy assets and supports major industrial customers.
Media release – Nick Duigan MLC, Minister for Energy and Renewables, 11 October 2025
Agreement on Boyer Mill welcomed
The Tasmanian Government welcomes the agreement reached between Aurora and the operator of Boyer Mill.
Minister for Energy and Renewables, Nick Duigan, thanked Boyer and Aurora for conducting the negotiations in good faith.
“This agreement locks-in the credit security requirements to cover the mill’s ongoing power needs and operations,” Duigan said.
“As a major industrial customer and a major employer, this is a good outcome for the state.
“The agreement balances Aurora’s fiduciary and commercial responsibilities and a workable solution for Boyer.”
Boyer is Australia’s last paper mill and employs around 300 Tasmanians, and the new agreement will help to maintain local employment levels into the future.
Duigan said that as Boyer is a major industrial customer, it was normal for Aurora to require a suitable guarantee on bills which amount to more than $40 million a year.
“Security arrangements apply to all of Aurora’s major industrial customers and are a standard requirement across the industry more broadly,” Duigan said.
“At the same time, we acknowledge Boyer’s plans to electrify and move away from its coal-powered boilers.
“I thank the representatives of Aurora and Boyer for their efforts in reaching this agreement.”
The details of the credit security requirements are in line with Aurora Energy’s credit security policy.
Trevor Danos, Chair, Aurora Energy said “Aurora Energy welcomes the new credit security arrangements agreed with the Boyer Mill.
“These ensure our relationship with an integral customer to the Tasmanian community continues whilst remaining in line with Aurora Energy’s commercial obligations.”
David Marriner, Principal, Boyer Capital Pty Ltd thanked all parties.
“I thank all stakeholders involved, particularly our own management team, for achieving a mutually acceptable outcome.
“Despite the distraction of these negotiations, our focus has been and continues to, remain on developing a sustainable future for our 310 employees.
“Critical to this vision is converting our boilers from coal-fired to electrification.
“This is a federal government backed initiative that will deliver a 170,000 tonne saving in carbon emissions for Tasmania,” said Marriner.
Media release – Janie Finlay MHA, Deputy Labor Leader, Shadow Minister for Energy & Renewables, 11 October 2025
Boyer Mill Agreement welcome
It is pleasing to see that an agreement has finally been reached between Aurora Energy and the Boyer Mill. This provides much-needed certainty for the 310 workers on site and means the vital electrification project can continue.
But yet again, this Government has left it to the last minute, with negotiations playing out under pressure and in the public spotlight. It should never be this hard.
This kind of uncertainty undermines business confidence in Tasmania. The Government needs to do better.
It’s about getting the basics of governing right: planning ahead, negotiating in good faith, and building trust and confidence.
Our major industrials, like Boyer, play a key role in Tasmania’s economy – not only as significant employers but as drivers of regional development.
Tasmania needs a stable policy environment, and a government can get the basics right and plan ahead to support long-term planning and investment.
Media release – Janie Finlay MHA, Deputy Labor Leader, Shadow Minister for Energy & Renewables, 7 October 2025
Minister M.I.A. on energy
At a time when multiple Tasmanian major industrials are under enormous pressure – placing the futures of hundreds of Tasmanian workers in deep uncertainty – Minister for Energy Nick Duigan is nowhere to be seen.
While it may be true that the major industrials are under pressures caused by issues outside of Tasmania, it’s also true that this pressure has been made worse by skyrocketing energy costs.
Earlier this year the Liberals admitted transmission costs for major industrials will rise by 25 per cent over two years.
We know there are concerns with bonds and we understand there are still long term power contracts still to be negotiated .
The Energy Minister can’t wash his hands of responsibility and point the finger elsewhere – he needs to explain what his government is doing to protect these jobs.
Tasmania owns our energy assets. This gives the Government levers to pull to support our state’s economic interest. Our Ministers must make sure our GBE’s act for Tasmania first.
There is no way GBEs are delivering on their ministerial charter to put Tasmania first, and they have been allowed to get away with it.
Tasmanians should expect their Energy Minister to be doing everything he can to ensure major industrials can continue to support Tasmanian jobs, but Nick Duigan appears to be doing almost nothing at all.
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