Australia Unveils $2.5 Billion Plan to Secure Future of Tomago Smelter

Australia pledges A$2.5 billion to keep Rio Tinto's Tomago aluminium smelter open beyond 2028 through a joint investment in new electricity generation, aiming to provide more affordable and reliable energy. Rio Tinto will also contribute at least A$1.1 billion to further decarbonization efforts.

Australia has announced a significant financial commitment of A$2.5 billion to ensure the continued operation of Rio Tinto's Tomago aluminium smelter, the country's largest, beyond 2028. This plan focuses on delivering affordable and reliable power.

The funding, jointly provided by the federal and New South Wales state governments, will support the generation of 3 gigawatts of new electricity. The initiative comes after Rio Tinto highlighted the risk of closure if commercially viable power is not secured by 2028.

In parallel, Tomago will invest A$1.1 billion in facility upgrades, including A$100 million for decarbonization efforts, as Australia transitions from coal-fired power to renewable energy sources. The smelter employs over 1,000 full-time staff and 200 contractors.