Australia’s Tomago Aluminium may close by 2028 due to unaffordable electricity costs, risking 6,500 jobs.

Australia’s largest aluminum smelter, Tomago Aluminium in New South Wales, may close by 2028 due to rising electricity costs, which make operations unviable beyond its current power contract expiration. Rio Tinto, which owns 51.5% of the smelter, says no commercially sustainable energy solution has emerged despite government offers, including a proposed 50-50 funding split. The company has begun employee consultations, with no decision yet made, but warns short-term fixes won’t solve long-term challenges. The closure would threaten about 1,500 direct and 5,000 indirect jobs in the Hunter Valley.