Massive bailout for Australia’s largest aluminium smelter expected to be announced by PM and NSW premier
Summary
Australia’s Prime Minister Anthony Albanese and New South Wales Premier Chris Minns are set to announce a government bailout worth up to $2.5 billion for the Tomago aluminium smelter. The funding aims to keep the smelter open despite rising energy costs, with the cost shared equally between the federal and NSW governments.Key Facts
- The Tomago smelter is Australia’s largest aluminium smelter and uses over 10% of New South Wales’ energy.
- The smelter employs about 1,000 workers and produces up to 590,000 tonnes of aluminium per year.
- Rio Tinto, the smelter’s owner, considered closing the site when its electricity contract ended.
- The bailout deal is expected to include $1 billion for capital improvements to the smelter.
- The announcement is planned for a joint visit to Tomago by Prime Minister Albanese and Premier Minns.
- The deal is linked to power purchase agreements with Snowy Hydro, a government-owned energy utility, creating about 2.5 gigawatts of new energy supply.
- Other metal smelters in Australia, including copper and steel works, are also receiving government support to continue operations.
- Tomago plans to become nearly 100% renewable in energy use by the end of the decade.
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