Major bailout announced for Australia’s largest aluminium smelter‘It’s a critical asset for the country and our manufacturing future.’3 min read

7NEWS

08/12

The future of Australia’s largest aluminium smelter and more than 1000 jobs has been locked in under a major multibillion-dollar bailout announced by Prime Minister Anthony Albanese and NSW Premier ...

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But there is now certainty over the future of aluminium smelting in the Hunter Region and more than 1000 direct jobs beyond 2028 after a $2.5 billion rescue deal funded jointly by the Commonwealth and state government was revealed.Know the news with the 7NEWS app: Download today Arrow“In December last year I stood in the rain at Tomago and told the workers ‘we have your back’,” Prime Minister Anthony Albanese said.“Today, alongside the NSW Government, we deliver on that promise.“This site isn’t just important for Newcastle and the Hunter, it’s a critical asset for the country and our manufacturing future.”The federal government and NSW state government have jointly contributed $2.5 billion to secure the future of the Tomago Aluminium smelter.  Credit: Michael Gorton/AAPThe smelter opened in 1983 and operates around the clock, producing about 590,000 tonnes of aluminium annually.That non-stop production requires significant power, and Tomago Aluminium chews through 10 per cent of all energy used in NSW.Power makes up more than 40 per cent of Tomago’s operating costs.Be the first to know: Add 7NEWS as your preferred news source on GoogleThe government said the joint investment will underpin close to three gigawatts of new renewable generation, progress decarbonisation of the state’s electricity system, and strengthen Australia’s ability to supply a global market increasingly hungry for low-emissions aluminium.Australia is among a handful of nations with an end-to-end aluminium supply chain and the government said the deal will “ensure revenue comes back to the federal government when aluminium prices are high”. There was no mention of a potential power purchase deal with government-owned utility Snowy Hydro in Thursday’s statement, as had been flagged might be the case ahead of the announcement. 7NEWS has reached out to the government for comment.Anthony Albanese has announced a new rescue deal for Australia’s largest aluminium smelter. Credit: Lukas Coch/AAPTomago Aluminium, which is majority owned by Rio Tinto, will invest at least $1.1 billion into the site.That will include $100 million for decarbonisation activities at the smelter and a demand-response program to support the state’s energy grid. NSW’s contribution will be capped at $1.225 billion over a decade from 2029.“This is a good day for the Hunter. This agreement secures more than 1000 jobs at Tomago and thousands more that rely on the smelter, and gives the region certainty about its future,” Minns said.\n\n“The Hunter has powered NSW and helped build this country for generations. “This agreement is about making sure it remains an industrial and manufacturing powerhouse for generations to come.”‘It’s been very difficult’Industry and Innovations Minister Tim Ayres said keeping Australia’s “end to end aluminium industry” alive was “critical. “Tomago is Australia’s largest and youngest smelter and is crucial to Australia’s industrial future,” Ayres said.\n\n”Keeping this capability here in Australia matters.“It makes our economy stronger, drives new electricity projects and maintains thousands of good quality blue collar and engineering jobs right here in the Hunter.”The Electrical Trades Union said workers had been anticipating an announcement after months of uncertainty.“It’s been very difficult for all employees on the site,” union organiser Brad McDougall before the support package was revealed, reported the ABC.“We get comments made like, ‘I wake up every day not knowing if today is going to be the day’, positive or negative.”Millions of Aussies now eligible to save hundreds of dollars on bills3 min readPanic buying subsides as fuel prices march higher2 min read","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}