Rio Tinto has warned that Australia’s largest aluminium smelter, Tomago in New South Wales, may close when its electricity contract expires in December 2028, putting around 1,000 jobs at risk. The company stated that despite extensive market engagement, no commercially viable energy supply options have been identified.
The smelter, located north-west of Newcastle, has struggled with high power prices. CEO Jérôme Dozol said all market proposals received so far show future energy prices are not commercially viable, and there is significant uncertainty about when renewable projects will be available at the required scale.
Tomago had previously announced plans to transition to 100% renewable energy by 2029. However, Rio Tinto has now initiated a consultation process with employees on the potential closure, though no final decision has been made.
The closure would be a major blow to the local economy and the Australian aluminium industry, which has seen several smelters face similar pressures from rising energy costs and the shift to renewable power.
