Australia Secures Future of Tomago Smelter with $1.76 Billion Energy Deal

Australia will provide A$2.5 billion to keep the Tomago aluminium smelter, the largest in the country, operational past 2028. A joint financial package will fund 3 gigawatts of new electricity generation. Tomago will also invest A$1.1 billion in facility enhancements and decarbonization efforts.

Australia has pledged A$2.5 billion ($1.76 billion) to ensure the continued operation of the Tomago aluminium smelter, the nation's largest, through the end of the decade and beyond. The funding aims to deliver more affordable and reliable power.

The strategic agreement will see a collaboration between the federal and New South Wales state governments to support 3 gigawatts of new power generation, crucial for the sustainability of the smelter. Rio Tinto previously warned of potential closure without viable power arrangements post-2028.

Investments by Tomago will include A$1.1 billion dedicated to facility upgrades, with a focus on decarbonization. The move retains Australia’s manufacturing prowess while adhering to global energy transition goals, as emphasized by Rio Tinto Aluminium & Lithium’s Chief Executive Jérôme Pécresse.