PERTH (Business Emerge/AUS): The Australian government has moved to stabilise operations at the Tomago aluminium smelter by outlining a plan intended to ensure the facility continues running once its existing energy contract reaches its end in 2028.
Officials confirmed that discussions with the smelter’s leadership and the New South Wales administration are underway to frame a long-term power arrangement. The announcement followed earlier warnings from the company that the plant, which employs more than 1,000 permanent workers and about 200 contractors, could face closure if it could not obtain reliable and affordable energy supplies.
The government indicated that the proposal under consideration includes securing a fixed-price electricity supply over an extended period. Tomago remains the largest single power consumer in New South Wales, and its scale reflects infrastructure built in an era when low-cost coal provided stable energy input for heavy industries.
Tomago’s operators noted that the future plan would require substantial investment over the next decade. The company expects to allocate no less than A$1 billion for capital upgrades and major maintenance activities, including measures that could support emissions-reduction pathways. Rio Tinto, a major shareholder in the smelter, stated that the ongoing discussions represent years of joint efforts to address energy-supply challenges affecting large-scale manufacturing in the country.
Federal officials have extended similar assistance packages in recent months to metallurgical and processing facilities across the country. The Tomago initiative follows earlier support for operations in Mount Isa, Townsville and Whyalla, reflecting the government’s broader attempt to preserve strategic industrial capacity.
As part of the developing arrangement, the government intends to offer concessional finance to help accelerate the rollout of renewable power generation and storage projects. Industry representatives said the full financial scope of the programme is still being evaluated, while trade unions have described the move as significant for the resilience of domestic manufacturing.
Further details of the plan are expected to emerge once negotiations conclude, with stakeholders indicating that the immediate priority is establishing a stable energy structure that can sustain Tomago’s operations beyond 2028.
