Deputy Prime Minister Grant Robertson and Energy Minister Megan Woods are visiting Invercargill today where they are meeting Southland leaders.
The pair are in Invercargill to update stakeholders on the discussions between the Government and smelter part owner Rio Tinto.
When asked if he believed an agreement on extending the smelter's life could be made by the end of the year, Robertson said he was "still very optimistic."
"We will just keep working - that's all we can do."
He said talks between the parties were still ongoing.
"We are remaining very committed to having a managed exit from the site so that is what we are working towards."
The pair's Invercargill visit comes on the same day as an announcement of a feasibility study to investigate the potential of a large-scale, renewable hydrogen production facility to replace the smelter.
Rio Tinto announced in July it would close the plant in Bluff in August next year.
The decision to close the smelter came after a review showed the business was "no longer viable given high energy costs and a challenging outlook for the aluminium industry".
However, during its election campaign, the Labour Party committed to work with Rio Tinto and Transpower to try to reach an agreement.
The party wanted to keep the smelter open for three to five years to protect about 1000 direct jobs and another 1600 indirect jobs, while also giving the community time to consider and plan its future.
Rio Tinto said a decision needed to be made before Christmas.
