Tomago smelter gets a lifeline

The Tomago aluminum smelter in New South Wales (NSW), Australia, is getting support from the Australian Federal and NSW state governments to insure its continued operation beyond 2029, according to multiple media reports.

Tomago produces 590,000 metric tons/year of aluminum, representing about 40% of aggregate Australian production. It’s owned by Rio Tinto (51.55%), Gove Aluminum Finance (36.05%), and Norsk Hydro (12.40%). It directly employs about 1,000 people.

The operating partners had been warning of a potential closure of the facility if it was unable to arrive at a new long-term power contract to replace the existing contract with AGL Energy that is scheduled to expire in 2028.

The joint press release from government and Tomago officials indicates the parties are working on a new long-term power purchasing agreement. In exchange, the Tomago partners are pledging A$1 billion in sustaining capital and other capital improvements.