Prime Minister Anthony Albanese and NSW Premier Chris Minns visited the Hunter region to announce a $2.5 billion agreement under which the federal and state governments will share equally the cost of supplying cheaper power to Tomago Aluminium, keeping the smelter running for at least another decade after it had warned it would close in 2028.
Australian governments commit $2.5 billion to keep Tomago Aluminium operating until at least 2038
Prime Minister Anthony Albanese and NSW Premier Chris Minns visited the Hunter region to announce a $2.5 billion agreement under which the federal and state governments will share equally the cost of supplying cheaper power to Tomago Aluminium, keeping the smelter running for at least another decade after it had warned it would close in 2028.
Tomago Aluminium, which employs about 1,000 workers, announced late last year that it would be forced to shut at the end of its current energy supply contract in 2028, citing rising coal-fired power costs and insufficient renewable energy infrastructure to meet the smelter's continuous heavy operations.
Under the agreement announced overnight, smelter owner Rio Tinto will invest at least $1.1 billion alongside the government funding, including $100 million directed toward further decarbonisation activities at the site.
Once complete, the arrangement is expected to deliver an additional 3 gigawatts of renewable power across New South Wales.
The smelter is known for a competitive apprenticeship program covering trades including electricians, fitters, boilermakers, and plant mechanics. Electrical engineer Dan Lines, a senior delegate for the Electrical Trades Union who has worked at Tomago for 20 years, said the business employs nearly 200 tradespeople and that workers in a younger cohort were looking forward to long careers there.
Rio Tinto recorded a $10 billion profit after tax in its most recent annual report, according to the source. The value of its total aluminium and lithium projects increased by $1 billion to $4.6 billion over the same period.
- The precise breakdown of how the $2.5 billion will be structured or disbursed over time is not detailed.
- The specific power price or subsidy rate Tomago Aluminium will receive under the agreement is not stated.
- Rio Tinto's direct response to criticism from the Greens and the opposition is not included.
- NSW Premier Chris Minns's stated position or remarks at the announcement are not reported.
- Whether any conditions or performance benchmarks attach to the government funding is not established.
- The source does not clarify what happens to the workforce or the agreement if the smelter proves commercially unviable before the decade is complete.
Read the original at ABC News Australia