$200 million package announced for Bell Bay Aluminium smelter

There's been a cloud hanging over Bell Bay Aluminium smelter, but the federal and state governments say its future is now strong. ( ABC News: Mitchell Woolnough )

The federal and state governments have announced a jointly funded $200 million support package for the Bell Bay Aluminium smelter in Tasmania.

A cloud hung over the smelter's future amid ongoing power price negotiations, but the state government says a deal has now been reached on power prices, separate from the funding package.

The $200 million will be spread over five years to "help secure Australia's ongoing aluminium production capability".

The Australian and Tasmanian governments have announced a $200 million support package for the Bell Bay Aluminium smelter after months of uncertainty.

The smelter's future had been looking shaky with its owner, multi-billion-dollar company Rio Tinto, locked in protracted negotiations with the state-owned power company Hydro Tasmania over a new power deal.

The smelter is a major employer in Northern Tasmania. ( ABC News: Mitchell Woolnough )

There were fears the smelter, which employs 550 people, would shut if a new deal was not reached before it expired at the end of the year.

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