A last-minute agreement between Aurora Energy and Boyer Capital has secured the future of Australia’s last remaining paper mill, creating certainty for hundreds of Tasmanian jobs.
The new credit security arrangement ensures ongoing power supply to the Boyer Paper Mill, which employs 310 workers..
Aurora Energy and the mill’s new owners had been locked in negotiations after the energy retailer sought a $7 million electricity bond to guarantee the facility’s substantial power consumption, estimated at more than $40 million annually.
Aurora Energy Chair Trevor Danos welcomed the resolution, confirming the agreement complies with commercial obligations while supporting the mill’s operations.
The agreement comes as a relief for Tasmania’s paper industry, with Boyer being the last remaining paper mill in Australia.
Boyer Capital head David Marriner thanked Aurora for reaching a “mutually acceptable outcome”.
“Despite the distraction of these negotiations, our focus has been, and continues to, remain on developing a sustainable future for our 310 employees,” Marriner said.
“Critical to this vision is converting our boilers from coal-fired to electrification.”
Energy Minister Nick Duigan thanked the two companies for conducting negotiations in “good faith”.
“This agreement locks-in the credit security requirements to cover the mill’s ongoing power needs and operations,” Duigan said.
“[It] balances Aurora’s fiduciary and commercial responsibilities and a workable solution for Boyer.”
Labor’s energy spokeswoman Janie Finlay criticised the government’s handling of the situation despite welcoming the outcome.
“Yet again, this government has left it to the last minute, with negotiations playing out under pressure and in the public spotlight. It should never be this hard,” Finlay said.
“This kind of uncertainty undermines business confidence in Tasmania. The government needs to do better.”
While specific terms remain commercial-in-confidence, Minister Duigan defended the negotiation process, saying security arrangements are “normal” for major industrial customers across the energy sector.
