{"id":852714,"date":"2026-08-12T15:38:16","date_gmt":"2026-08-12T15:38:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/852714\/"},"modified":"2026-08-12T15:38:16","modified_gmt":"2026-08-12T15:38:16","slug":"tomago-aluminium-australias-largest-aluminium-smelter-to-receive-2-5-billion-bailout-package","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/852714\/","title":{"rendered":"Tomago Aluminium: Australia\u2019s largest aluminium smelter to receive $2.5 billion bailout package"},"content":{"rendered":"

Australia<\/a>\u2019s largest aluminium smelter will receive a $2.5 billion bailout package from the NSW and federal governments in a bid to secure its future and provide certainty for more than 1000 workers.<\/p>\n

Tomago Aluminium, located in the NSW<\/a> Hunter region, was at risk of closing at the end of its existing electricity supply contract on December 31, 2028.<\/p>\n

\"Tomago<\/p>\n

Tomago Aluminium is Australia\u2019s largest aluminium smelter.\u00a0James Brickwood<\/p>\n

The new bailout package will be announced by Prime Minister Anthony Albanese and NSW Premier Chris Minns on Thursday.<\/p>\n

The smelter, which is majority-owned by resources giant Rio Tinto, is also facing rising electricity costs.<\/p>\n

The cost of coal-fired and renewable energy options is expected to increase from January 2029, based on current market proposals.<\/p>\n

Tomago Aluminium is the single largest user of electricity in NSW, consuming more than 10 per cent of the state\u2019s power supply.<\/p>\n

The smelter is also facing intensifying competition from cheaper producers of metal in China<\/a>.<\/p>\n

Tomago Aluminium has agreed to invest at least $1.1 billion in the facility as part of the new bailout deal, including $100 million to drive further decarbonisation activities at the smelter and support demand from the NSW grid.<\/p>\n

The investment is expected to accelerate the decarbonisation of more than 10 per cent of the state\u2019s electricity grid.<\/p>\n

The NSW and federal governments estimate the bailout package will secure 5000 indirect jobs in the broader economy in the Hunter region.<\/p>\n

\u201cThis is a massive investment in local families and our local economy,\u201d Member for Port Stephens Kate Washington said. <\/p>\n

\u201cTomago Aluminium is one of the largest employers in Port Stephens.\u201d<\/p>\n

The Tomago Smelter deal is the latest taxpayer-funded rescue package for the country\u2019s struggling metals processors in the last two years.<\/p>\n

The Albanese government has also contributed to packages worth $2 billion for Rio Tinto\u2019s Boyne smelter<\/a> in Queensland<\/a>, $2.4 billion for the collapsed Whyalla steelworks<\/a> in South Australia<\/a>, and $600 million for Glencore\u2019s copper smelter and refinery in Mt Isa<\/a>.<\/p>\n

Tomago Aluminium produces\u00a0590,000 tonnes of aluminium every year, which is Australia\u2019s fifth-largest export commodity.<\/p>\n

Aluminium is used in the production of cars, planes, homes, sporting equipment and drink cans.<\/p>\n","protected":false},"excerpt":{"rendered":"Australia\u2019s largest aluminium smelter will receive a $2.5 billion bailout package from the NSW and federal governments in…\n","protected":false},"author":2,"featured_media":852715,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[64,63,44],"class_list":["post-852714","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australia","tag-au","tag-australia","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/852714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=852714"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/852714\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/852715"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=852714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=852714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=852714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}