Published • loading... • Updated
Tomago Power Deal Strengthens Australia’s Aluminium Industry
The package could include a 10-year discounted power deal as owners and governments work to keep the smelter open beyond 2028.
- Prime Minister Anthony Albanese and New South Wales Premier Chris Minns will visit the Hunter region on Thursday to announce a multi-year bailout for Tomago Aluminium, securing the plant's future beyond 2028 and protecting more than 1,000 jobs.
- Rio Tinto warned last year the smelter faced closure when its energy supply contract expires in 2028, as electricity costs account for more than 40 per cent of the plant's operating expenses.
- Federal sources indicate the arrangement includes a 10-year power-purchase agreement with Commonwealth-owned Snowy Hydro to provide discounted electricity, resolving tense negotiations over state and federal funding contributions.
- Workers who faced months of uncertainty welcomed the announcement. "It's been very difficult for all employees on the site," The Electrical Trades Union organiser Brad McDougall said.
- This rescue follows similar taxpayer-funded bailouts for Glencore's Mount Isa copper smelter and Nyrstar Australia's operations, as the government seeks to maintain sovereign industrial capacity amid intense global competition from subsidized Chinese producers.
Insights by Ground AI
Podcasts & Opinions
40 Articles
40 Articles
Tomago power deal strengthens Australia’s aluminium industry
Tomago Aluminium's future is secured to 2038 under the new agreement. Image: Rio TintoAustralia’s largest aluminium smelter has a future locked in until 2038 after the Federal and New South Wales governments committed $2.5 billion to keep Tomago Aluminium running, ending years of doubt over the plant in the Hunter region. Majority-owned by Rio Tinto, Tomago produces up to 590,000 tonnes of aluminium a year, almost 40 per cent of the national tot…
Coverage Details
Total News Sources40
Leaning Left7Leaning Right7Center6Last UpdatedBias Distribution35% Left, 35% Right
Bias Distribution
- 35% of the sources lean Left, 35% of the sources lean Right
35% Right
L 35%
C 30%
R 35%
Factuality
To view factuality data please Upgrade to Premium
