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Bell Bay Aluminium warns further power cuts could lead to more job losses

Tuesday, 8 Mar 2016 07:42:32

The aluminium smelter employs 1,500 people and has already shed some contractors. (Rob Bennett: bellbayaluminium.com.au)

The general manager of the Bell Bay Aluminium smelter in Tasmania's north has warned further power rationing could lead to job losses.

The smelter employs 1,500 people and has already shed a handful of contract workers.

The plant consumes about 25 per cent of the state's electricity demand and is also grappling with low aluminium prices.

It has wound down 10 per cent of its production for four to five months, as the state deals with an energy crisis caused by the broken Basslink cable and low hydro storage levels.

The smelter's general manager, Ray Mostogl, has told 936 ABC Hobart the reduction has been tricky to implement.

"Even though we started this reduction over a month ago we are still busily fine tuning that," he said.

"Right now we are getting to a point where this is as low as we can operate.

"If we were to take any more power off we would have to be cutting some of those furnaces out."

Mr Mostogl said the situation could also threaten the plant's expansion plans.

"What loss of momentum will Bell Bay suffer in two or three years' time, it will become quite apparent this was more significant because we are not able to go ahead with an investment decision," he said.

State Energy Minister Matthew Groom is due to give a ministerial statement in Parliament today about the power crisis.

AustraliaPlus


 

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