Rio Tinto's aluminium smelter in northern Tasmania has signed a new power supply deal and will shed 30 jobs, as it tries to improve its balance sheet.
The Bell Bay smelter is struggling to cope with low prices and the high Australian dollar.
It was put on the market last year.
Management has told employees at the site that the company would shed 30 jobs, reducing its workforce to 500.
Some workers will be offered other positions within the company, or redundancies.
The smelter has also announced it has signed a new 13-year power deal with Hydro Tasmania.
The company says the deal will allow greater flexibility for the site's power use.
The smelter's general manager, Ray Mostogl, would not reveal how much it would save under the deal.
"I can't give, I won't give you a specific number," he said.
Mr Mostgol was asked whether the plant would have shut down without the new power agreement.
Certainly it would have made it more difficult to be in business had we not been able to secure that," he said.
"But as I said earlier, it's in addition to what we've already done on site and it's the combination of both that's really given us that viability.
"It certainly lifts a cloud we've had hanging over our heads." The Bell Bay site is Hydro Tasmania's biggest commercial contract.
The Tasmanian Government claims the new power deal has saved 500 jobs.
Premier Lara Giddings says the deal is a good one.
"This is about 500 jobs being secured," she said.
"We have seen other smelters around Australia close their doors and we did not want to see that happen here in Tasmania.
"So today we have more security...as well as for all those contractors that do also benefit from having these major industrials here at Bell Bay." Australian Workers Union national secretary, Paul Howes, says it would have been worse without the new power agreement "Thirty jobs going is a hell of a lot better than 530 jobs going and that was a real prospect a few weeks ago." Mr Howes says the union is working to ensure the job losses are minimised.
The smelter, also called Pacific Aluminium, is part of a group of aluminium assets which Rio Tinto is trying to sell.