The immediate future of the Southern Hemisphere's first aluminium smelter is more secure, after the signing of a power agreement.

Tasmania's Bell Bay Aluminium, which is owned by Rio Tinto, was under a cloud amid stalled discussions for a new deal with state-owned electricity provider Hydro Tasmania.

The smelter in the state's north employs more than 500 people - its decade-long deal with Hydro was set to expire on December 31.

The state government on Wednesday said a 12-month agreement had been reached allowing time for work to continue on a long-term plan for the smelter.

"The smelter is a cornerstone of Tasmania's economy," Premier Jeremy Rockliff said in a statement.

"We are doing all we can to make sure the business continues to have a strong future in the state.

"It is importan

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