Hunter business and union groups are calling on the New South Wales government to enter a 50-50 funding arrangement with the federal government to ensure the long-term viability of Tomago Aluminium, one of the region's largest employers.
Urgent Appeal to State Government
Representatives from the Hunter Business Chamber and the Australian Workers' Union have jointly urged Premier Chris Minns to commit to a shared funding model for the smelter, which employs around 1,000 workers directly and supports thousands more indirectly. The call comes amid ongoing uncertainty over the plant's future due to rising energy costs and global market pressures.
The groups argue that without a stable funding agreement, Tomago Aluminium faces significant risk of closure, which would have devastating economic consequences for the Hunter region. The smelter is a major contributor to the local economy, with an estimated annual output of over $1 billion.
Proposed Funding Model
The proposed 50-50 deal would see the state and federal governments each contribute half of the necessary funding to support the smelter's operations and transition to cleaner energy sources. This model, the groups say, would provide the certainty needed for the company to invest in long-term sustainability and job security.
"This is not just about saving jobs; it's about securing the future of manufacturing in the Hunter," said Bob Hawes, CEO of the Hunter Business Chamber. "We need both levels of government to step up and work together to support this critical industry."
Economic and Social Impact
The closure of Tomago Aluminium would have a ripple effect across the region, affecting supply chains, local businesses, and community services. The plant is one of the largest electricity users in the state, and its continued operation is vital for maintaining grid stability and supporting renewable energy integration.
"This smelter is the backbone of our local economy," said Wayne Phillips, Secretary of the Australian Workers' Union Newcastle branch. "We cannot afford to lose it. A 50-50 funding deal is a fair and practical solution that will protect jobs and ensure the region's prosperity."
Government Response
The NSW government has not yet officially responded to the proposal, but sources indicate that discussions are ongoing. The federal government has previously expressed support for the smelter but has called on the state to increase its contribution.
"We are committed to working with all stakeholders to find a sustainable solution for Tomago Aluminium," said a spokesperson for the NSW Department of Industry. "We recognize the importance of this facility to the Hunter region and are exploring all options."
The Hunter groups have called for an urgent meeting with the Premier to discuss the proposal, emphasizing that time is of the essence. With global aluminium prices volatile and energy costs continuing to rise, they warn that any delay could put the smelter's future at risk.
