Prime Minister Anthony Albanese and NSW premier Chris Minns are expected to announce a bailout worth as much as $2.5bn for the Tomago aluminium smelter, Australia's largest, according to the Guardian.
Key facts
- The bailout is reported to be worth as much as $2.5bn.
- It targets the Tomago aluminium smelter, located north-west of Newcastle in NSW.
- Rio Tinto said in December it was contemplating ceasing operations at the smelter.
- The prospective closure was linked to the end of its current electricity supply contract.
- The deal is expected to be announced by PM Anthony Albanese and NSW premier Chris Minns.
Prime Minister Anthony Albanese and New South Wales premier Chris Minns are preparing to mount a major bailout of Australia’s largest aluminium smelter, in a deal worth as much as $2.5bn, according to the Guardian.
The bailout targets the Tomago aluminium smelter, located north-west of Newcastle in NSW. The Guardian describes it as Australia’s largest aluminium smelter.
The move follows Rio Tinto’s statement in December that it was contemplating ceasing operations at the Tomago smelter. According to the Guardian, the resources giant said it may end operations at the end of its current electricity supply contract.
The reported deal signals a joint federal and state government intervention to keep the smelter operating. Both Albanese and Minns are expected to be involved in announcing the arrangement.
The Guardian reported the figure as being worth as much as $2.5bn, indicating the scale of the support being prepared for the facility.
Beyond the size of the deal and its link to Rio Tinto’s electricity supply contract, further details of the bailout’s structure were not set out in the available reporting.
Why it matters
The Tomago smelter is described as Australia's largest, so its potential closure would carry significant consequences for regional jobs and the country's aluminium production. A government bailout of up to $2.5bn reflects the stakes involved in keeping heavy industry viable amid pressures on electricity supply.
Frequently asked questions
How much is the Tomago smelter bailout worth?
According to the Guardian, the deal is worth as much as $2.5bn.
Why was the Tomago smelter at risk of closing?
Rio Tinto said in December it was contemplating ceasing operations at the smelter at the end of its current electricity supply contract, according to the Guardian.
Who is expected to announce the bailout?
Prime Minister Anthony Albanese and NSW premier Chris Minns are expected to announce the deal, the Guardian reported.