Prime Minister Anthony Albanese has announced a deal aimed at securing the future of the Tomago aluminium smelter in the Hunter region, assuring that roughly 1,000 jobs will be preserved.
The agreement, reached with the facility's board, will link the smelter to renewable energy sources, helping to reduce electricity costs and extend its operations beyond the previously threatened 2028 closure.
The smelter’s future had been uncertain since October, when owner Rio Tinto (ASX:RIO) cited high power prices as a reason for potential closure.
Federal Industry Minister Tim Ayres, in collaboration with the NSW Government and Tomago management, explored options including connecting the plant to energy from the Commonwealth-owned Snowy Hydro Project.
Speaking at the refinery on Dec. 12, Albanese declined to disclose the financial details of the deal but emphasised the government’s commitment to supporting the workforce.
"All the workers here have a great Christmas and the knowledge that we have overcome months as a result of the decision that we have taken. My message to workers is that we’ve got your back," he said.
If implemented, this will mark the fourth instance in which the Albanese government has intervened to support a struggling metals processor.