Rio Tinto's Tomago Aluminium Smelter Faces Closure Threat Amid Rising Energy Costs in Australia

The prime minister and NSW premier are expected to announce a bailout for the country's largest aluminium smelter tomorrow. Rio Tinto, the owner of the Tomago Aluminium smelter, previously threatened to close it due to rising energy costs. The New South Wales and federal governments are believed to have struck a deal to secure the future of Australia's largest aluminium smelter, Tomago Aluminium.

The struggling smelter was facing closure in 2029 amid the rising cost of renewable and coal-fired power. The prime minister and NSW premier are expected to announce details of the deal on a visit to the Hunter region tomorrow. A bailout of the country's largest aluminium smelter is expected to be announced by Prime Minister Anthony Albanese and New South Wales Premier Chris Minns tomorrow. Late last year mining giant Rio Tinto warned the Tomago Aluminium plant could be forced to close when its energy supply contract ran out in 2028 due to the rising cost of renewable and coal-fired power.