New South Wales Premier Chris Minns has reiterated the state's commitment to saving Tomago Aluminium, Australia's largest aluminium smelter, but says he is still waiting to learn the expected financial contribution from the state government.
Prime Minister Anthony Albanese visited the smelter in December to announce an energy supply deal was being finalised with the state and Rio Tinto, but no formal package has been delivered four months later. The premier told ABC Newcastle Breakfast that the state is 'definitely going to put money into saving it' but needs to know the cost.
In late October, Tomago CEO Jérôme Dozol warned that if power prices followed market projections, aluminium production at the site would be 'unviable' beyond 2028. The federal government is reportedly pursuing a deal similar to the one struck with Queensland for the Boyne aluminium smelter, which involved a 50:50 split of $1 billion each from the state and federal governments.
Industry and Innovation Minister Tim Ayres said the Boyne deal provided a 'useful road-map' for Tomago, but Premier Minns noted that New South Wales is in a different position due to private ownership of most electricity distributors. 'Every dollar I put into this agreement has got to come from somewhere else,' he said.
The Australian Workers Union has criticized delays in negotiations, with national secretary Paul Farrow saying it would be 'absolutely devastating' if the deal fell through. Business Hunter chief executive Bob Hawes urged both parties to reach an agreement quickly to secure manufacturing in the region, warning that bad news about Tomago would be 'on just an absolute another level.'
