Tomago Aluminium the smelter to be opened beyond 2028
The Australian Government has unveiled a plan to work with the NSW Government and Tomago Aluminium to keep the smelter open beyond 2028.
It said it will explore a pathway to deliver electricity supply to Tomago Aluminium from 2028, and described the move as an important step for the smelter, its workforce, and the broader Hunter region.
The partnership will aim to deliver a long-term, fixed-price power purchasing agreement for the smelter, along with concessional finance arrangements to accelerate renewable energy generation and storage developments in NSW.
As part of the agreement Tomago Aluminium will contribute at least $1 billion in capital and major maintenance investment over the next decade, which includes identifying further decarbonisation opportunities for the smelter.
Tomago Aluminium Chief Executive Officer Jerome Dozol said: “Today’s development represents a significant milestone in our ongoing engagement with many stakeholders working towards this shared goal.
“It reflects our collective recognition of the importance of maintaining local manufacturing capability in Australia.
“We look forward to working collaboratively with government on this next phase.”
Australian Aluminium Council CEO Marghanita Johnson welcomed the move and said “Competitive energy is the critical foundation that enables Australian businesses to succeed in global markets.
For aluminium smelters, it is not optional — it is existential.
“The aluminium industry is no longer competing against foreign companies but against foreign governments writing the rules to their own advantage.
“To counter this, Australian Governments must use every tool available to secure competitively priced electricity and support our industrial base — including working together to get the job done.
“Today’s announcement represents a step in the right direction in creating the conditions needed to help restore Australia’s industrial competitiveness.” Australia’s Minister for Climate Change and Energy, Chris Bowen said: “Tomago Aluminium has made it clear: to remain competitive and secure its future the smelter needs a reliable and affordable supply of renewable energy, with ageing coal-fired power options being prohibitively expensive.”
