Rio Tinto’s Tomago aluminium smelter in Hunter Valley could be bailed out by Anthony Albanese, Chris Minns
A massive bailout to save one of Australia’s fabricating giants is closer than ever, potentially ending months of uncertainty for workers.
Anthony Albanese and NSW Premier Chris Minns are poised to sign a bailout agreement for the beleaguered Tomago aluminium smelter, ending months of uncertainty for workers.
NewsWire understands a deal is set to be signed on Thursday with mining giant Rio Tinto, which holds a majority stake in the NSW Hunter Valley smelter.
Tomago is Australia’s single largest consumer of electricity, sapping 10-12 per cent of NSW’s electricity supply. It employs about 1000 people.
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Rio Tinto previously warned they would need to shut Tomago if it could not lock in an affordable, long-term power source by 2028.
In December, Mr Albanese announced the federal and NSW governments would provide Tomago with subsidised “clean” power to keep the smelter open beyond 2028.
“If Australia doesn’t produce aluminium, then the knock-on effect in other industries is significant because aluminium is increasingly a vital product,” he said at the time.
It’s understood any deal is likely to include an underwriting by Snowy Hydro 2.0 for any renewable projects to power Tomago at a reported cost of more than $300m per year for 10 years to the taxpayer.
Rio Tinto previous underwrote $7.5bn in renewable energy and storage in Queensland.
The Albanese government has in recent years stepped in to save major manufacturing projects, including the Boyne aluminium smelter in Queensland and South Australia’s Whyalla steelworks.
However, the deal for Tomago – which would include at least $1bn in capital and major investment over the next decade – would reportedly require the federal and NSW governments to agree on how to share the bill.
Earlier this month, Mr Minns said talks were continuing with the federal government despite the Electrical Trades Union calling for the deal to be signed soon.
The Australian Workers’ Union, which represents Tomago workers, welcomed the December commitment and has also agitated for a deal.
Originally published as Anthony Albanese, Chris Minns poised to sign deal to save Tomago, NSW smelter
