Reuters reported that Australia's Bell Bay aluminium smelter reached a new 13 year power supply deal to help secure the long term future of the 182,000 tonnes per year plant in the face of depressed market conditions.

Rio Tinto said that the 57 year old smelter, located in the island state of Tasmania, is among an estimated USD 8 billion worth of assets bundled by Rio Tinto into its newly formed Pacific Aluminium division ahead of a possible divestment. Terms of the power contract with the state owned supplier Hydro Tasmania were not disclosed.

Mr Ray Mostogl GM of Bell Bay said that tough market conditions were expected to continue for some time. The price of aluminium is down more than 20% this year.

Rio Tinto in October signalled a major retreat from its aluminium business, putting aluminium related assets up for sale across six countries, only 4 years after buying aluminium giant Alcan for USD 38 billion. To date no assets have been sold.

Source - Reuters

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