Rio Tinto seeks government aid to save NSW’s Tomago smelter from closure due to soaring electricity costs post-2028.

Rio Tinto is in urgent talks with Australian federal and New South Wales governments to prevent the closure of the Tomago Aluminium smelter, which faces financial strain due to projected electricity cost increases after 2028. The smelter, employing over 1,500 people and consuming more than 10% of NSW’s power, could see energy costs more than double, with power making up over 40% of its operating expenses. The company is seeking government-backed support, potentially involving taxpayer funds, marking the fourth such intervention by the Albanese government this year to stabilize struggling metal producers. While Rio Tinto is transitioning its Queensland smelter to 80% renewable energy, similar reliable 24/7 renewable supply remains limited in NSW. Tomago produces up to 590,000 tonnes of aluminium annually for construction, vehicles, packaging, and renewable energy infrastructure.