Boyer Paper Mill Closure Looms Over $7M Energy Demand

Unions representing 300 workers at Hobart’s historic Boyer Paper Mill have sounded a grave alarm today over a $7 million bank guarantee demand by Aurora Energy, which they warn could force the mill’s immediate closure and cost 300 direct jobs.

The Communications, Electrical and Plumbing Union (CEPU) and the Australian Manufacturing Workers’ Union (AMWU) are condemning Aurora for imposing the “inexplicable” and obscure condition on the new local owners—who are attempting to turn the company around—while threatening to cut the site’s energy supply within days, a move that would end 80 years of continuous operation and remove a $180 million annual contribution to the local economy.

Media release – Communications, Electrical and Plumbing Union, 3 October 2025

Aurora Energy overreach risks 300 jobs, $180M to the local economy and may close Boyer Paper Mill

The Unions representing the 300 workers at Hobarts historic Boyer Paper Mill today have sounded the alarm as Tasmania’s energy retailer Aurora has inexplicably demanded $7m in bank guarantees from the new owners of the Boyer Paper Mill which could force its closure.

It stems from an obscure condition in which Aurora can demand bank guarantees for the provision of energy to a site if there is a change in ownership.

If the new owners of the site don’t comply within a matter of days, they have threatened to cut supply to the site which would be the end of the operation which has continuously run for over 80 years.

CEPU State Secretary Chris Clark and the AMWU State Secretary Jacob Batt have both condemned the demand from Aurora.

“Everyone knows the Mill was in strife and the new owners are trying to turn things around after years of neglect and mismanagement by the former owners, but its beyond strange now for a government to put a $7m gun to the head of rebuilding business and given it would effectively sink the company, it simply cannot happen” said CEPU State Secretary Chris Clark.

“It raises so many questions about the way our public assets are managed.

Why didn’t Aurora do this with the previous owner that foreign owned shell company which owned Boyer, as opposed to having local ownership trying to map out an actual future for the site?” AMWU State Secretary Jacob Batt has asked.

The Unions understand that the company is calling an emergency meeting on site to capture over 200 workers to update them on the grim situation.

“The government has a big decision to make, allow our energy retailer Aurora to be the latest government owned business to make another woeful call against the interest of Tasmania, or treat Boyer the same way it has for 60 years and give it the best chance to succeed and provide employment to over 300 people and their families, as well as 1,000 indirect jobs? Let’s not forget, the mill also contributes $180M to the local Tasmanian economy” said Batt.

“It’s well past time for an enquiry to be held into the conduct of our government owned utilities. They all used to operate to provide the cheapest services and good jobs and now they seem to work in the opposite.

“The Mill already pays $44m in energy costs annually, it’s ridiculous that this sites history of compliance for a critical resource would be ignored at such an important time while it gets back on its feet” said Clark.

“This would be one of the worst breaches of trust and betrayal of Tasmanian workers by a government that we’ve seen” said Batt.

Media release – Janie Finlay MHA, Shadow Minister for Energy & Renewables, 3 October 2025

Government must ensure Boyer jobs aren’t placed at risk

Labor is calling on the Government to ensure operations and jobs at the Boyer Paper Mill aren’t impacted after unions today raised the alarm about power supply contracts to the site.

The mill employs 300 workers and contributes $180 million to the local economy.

Aurora may be taking a zero-risk approach to its bond negotiations, but by doing so, it is greatly risking Tasmania’s economy and the contribution the Boyer Paper Mill makes to it.

Tasmanian Government Businesses should be working for the best interests of the state. This is not the first time we’ve heard of Aurora being inflexible in bond negotiations with key employers. The Premier and Minister for Energy should step in and make sure a resolution can be found.

Tasmania’s major industrials are our economy’s engine room. One of the levers Government has to support them is energy and they should be doing everything they can to encourage growth and support jobs.

Boyer’s efforts to future proof the mill by converting boilers from coal to electricity have already been hampered by a lack of available power under this Government.

Tasmania’s economy can’t afford to lose the contribution of our major industrials, and the Government must ensure operations and jobs at the Boyer Paper Mill aren’t impacted.

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