Smelting giant Pacific Aluminium has reaffirmed its long-term commitment to maintaining operations in its Bell Bay smelter following a successful renegotiation of power contracts with Hydro Tasmania.


"This announcement lifts the cloud of uncertainty that has been hanging over this region and gives the people of George Town and Northern Tasmania renewed hope that they have turned a corner," Premier Lara Giddings said.


"The fact that contracts have been secured until 2025 shows that Pacific Aluminium is here to stay and is an important sign of confidence for the Tasmanian economy.


"It is also great news for the jobs of 500 Tasmanians, while I recognise that around 30 employees will be affected by the restructure.


"I am advised these workers will be offered alternate roles or redundancies and that the restructure is necessary to secure the long-term future of the smelter against a backdrop of low commodity prices and the high Australian dollar.