Rio’s Tomago Smelter Wins A$1.76B Government Lifeline
The deal will add 3 gigawatts of wind and solar power and lift Tomago’s renewable supply to 100% by 2033, officials said.
- On Thursday, the Commonwealth and New South Wales governments announced a $2.5 billion joint rescue package for the Tomago Aluminium smelter near Newcastle, securing operations beyond 2028 and protecting more than 1,000 direct jobs.
- Intensifying foreign competition and rising energy costs threatened the smelter's viability, as existing electricity contracts were set to double in price after 2028, prompting state and federal intervention to prevent closure of a major Hunter manufacturing employer.
- Under the 10-year deal, Tomago Aluminium agreed to invest at least $1.1 billion into the facility, while the government will add three gigawatts of renewable energy capacity to the grid, targeting 100 per cent renewables by 2033.
- Prime Minister Anthony Albanese defended the investment as vital to national interests, though Grattan Institute experts questioned whether the rescue package received sufficient independent scrutiny to protect taxpayers from supporting an uncompetitive commercial enterprise.
- Climate Change and Energy Minister Chris Bowen noted the new energy sources will be spread across New South Wales, aiming to decarbonise aluminium production while ensuring long-term reliability and affordability for the state's electricity system.
12 Articles
12 Articles
Rio’s Tomago smelter wins A$1.76B government lifeline
Australia and New South Wales have committed A$2.5 billion (US$1.76 billion) to keep Rio Tinto’s (ASX, NYSE, LSE: RIO) majority-owned Tomago aluminium smelter open beyond 2028 after high electricity costs... The post Rio’s Tomago smelter wins A$1.76B government lifeline appeared first on The Northern Miner.
$2.5 billion bailout for Tomago aluminium smelter
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Sydney Morning Herald
The AgeTomago’s $2.5 billion rescue reignites debate over taxpayer bailouts
The $2.5 billion taxpayer rescue of Australia’s largest aluminium smelter has raised questions over whether public funds are backing uncompetitive manufacturers.
Australia’s Largest Aluminium Smelter Receives $2.5 Billion Government Lifeline
The federal and New South Wales (NSW) Labor governments will jointly fund a $2.5 billion (US$1.8 billion) bailout package for the Tomago Aluminium smelter over the next 10 years. The facility, located in the Hunter region north of Sydney, has struggled with rising power prices, which account for almost half of its operating costs. As part of the deal, Tomago operators will invest a minimum of $1.1 billion in the facility, including $100 million …
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