GEORGE Town business leaders say Rio Tinto's $30 million vote of confidence in Bell Bay Aluminium is the best news the region has had in years.
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George Town Chamber of Commerce president Andrew Michieletto said business confidence in the community was sure to rise following news that the smelter's future was secure, while planned upgrades to the facility would be worth about $15 million to local contractors.
More than 1500 jobs connected to the smelter were consolidated after a deal was struck with Hydro Tasmania to supply an extra 33 megawatts, paving the way for a capital investment package that will increase aluminium production by 4000 tonnes a year.
"It's probably the best news this area's has had in quite a few years," Mr Michieletto said.
"As you know, it's been pretty hard out here - people were starting to think that it was never going to happen.
"Local contractors will probably have to put more people on to cover the project."
Bell Bay general manager Ray Mostogl said work on the smelter's wharf and carbon baking furnace would be spread over the next three years, potentially using up to 40 local contractors.
Mr Michieletto said he hoped the benefits would stretch further than the George Town municipality.
"Once the ball starts rolling in one area, it starts happening elsewhere," he said.
"So hopefully it means more positive news for the rest of the state as well."
Bell Bay Aluminium directly employs 435 people and indirectly supports more than 1000 jobs in Tasmania. The smelter contributes $690 million a year to Tasmania's gross state product and in 2014 spent $216 million buying goods and services from 335 Tasmanian suppliers.