Rio Tinto welcomes agreement to secure long-term future of Tomago Aluminium
Rio Tinto has welcomed the agreement announced today between Tomago Aluminium, the Australian Government and the New South Wales Government to secure the long-term future of Australia’s largest aluminium smelter.
The arrangements provide long-term certainty for Tomago Aluminium, its workforce, its customers and the Hunter region, delivering reliable, internationally competitive power to the smelter until 2038.
Under the agreement, Tomago Aluminium will enter into a 10-year power purchase agreement (PPA) for electricity supply to the smelter through to 2038, with the power to be supplied by 100 per cent renewable sources from 2033. The PPA will begin following the 31 December 2028 expiry of the current electricity contract.
Tomago Aluminium will support the new agreement with A$1.1 billion (in real terms) of investment in the smelter between now and 2038, including A$100 million for decarbonisation initiatives. The smelter will continue to provide important demand response services to the New South Wales electricity system.
