Arabic version: الحكومتان تتقاسمان خطة إنقاذ لمصهر توماغو بقيمة 2.5 مليار دولار

According to ABC News, the federal and New South Wales governments have agreed to spend $2.5 billion over 10 years to secure the future of Tomago Aluminium, Australia’s largest aluminium smelter. The governments are expected to split the cost evenly, while the NSW contribution is capped at $1.225 billion over 10 years from 2029.

Rio Tinto, which owns the Hunter region smelter, warned late last year that the plant could be forced to close when its energy supply contract ends in 2028. The company cited rising costs for renewable and coal-fired power. Tomago operates 24 hours a day, has done so since 1983, and employs about 1,000 workers.

A joint government statement said the investment would provide a long-term renewable energy solution supporting commercially sustainable operations beyond 2028. It also said the package would accelerate decarbonisation of more than 10 per cent of NSW’s electricity grid. Tomago uses about 10 per cent of the state’s total annual electricity supply, making it the largest single electricity user in NSW.

Rio Tinto will invest at least $1.1 billion in addition to taxpayer funding to reduce the smelter’s energy use and shift it towards renewables. That includes $100 million for further decarbonisation work and a demand-response program intended to support the NSW grid. Prime Minister Anthony Albanese and NSW Premier Chris Minns are expected to visit the smelter on Thursday, when full details of the package are expected to be announced.