The fate of Australia’s largest aluminium smelter is all but sealed after the Federal Government announced plans to keep Tomago Aluminium open beyond 2028.
Efforts between the Australian Government, New South Wales Government and the smelter, look to secure thousands of jobs across the Hunter and position Australia as a global leader in aluminium produced using renewable energy.
Over the coming months, it’s understood Tomago Aluminium will work with the Federal and NSW Governments on a long-term renewable energy solution to support the smelter’s viability when its current energy contract expires in 2028.
“Today’s development represents a significant milestone in our ongoing engagement with many stakeholders working towards this shared goal. It reflects our collective recognition of the importance of maintaining local manufacturing capability in Australia,” Tomago Aluminium chief executive officer Jerome Dozol said.
The smelter – owned by Rio Tinto – will contribute at least $1 billion in capital and major maintenance investment over the next decade as part of a successful agreement.
“Today’s announcement at Tomago is an important day for Australian manufacturing. My thanks to Prime Minister Anthony Albanese and NSW Premier Chris Minns and their governments for their commitment to exploring a new pathway for reliable, long-term, and competitively priced energy beyond 2028,” Rio Tinto chief executive Simon Trott said.
“This progress reflects years of collaborative work between Tomago and its joint venture partners including Rio Tinto, in addressing one of the most complex energy challenges facing Australian industry.”
The move has received industry-wide support, with the Australian Aluminium Council echoing that the smelter’s future is key to international supply chains.
“Competitive energy is the critical foundation that enables Australian businesses to succeed in global markets. For aluminium smelters, it is not optional — it is existential,” chief executive officer Marghanita Johnson said in a statement.
Founded in 1982, Tomago Aluminium produces up to 590,000 tones of aluminium a year – contributing 40 per cent to Australia’s total annual aluminium production.
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