Australia plans to announce $2.5 billion in support for the Tomago plant
The Australian federal government and the New South Wales state government plan to announce a $2.5 billion support package for Tomago, the country’s largest aluminum plant. The funding is intended to help the plant, located northwest of Newcastle, continue operations beyond 2028, according to The Guardian World.
In December, mining company Rio Tinto stated that it was considering shutting down Tomago once its current electricity supply contract expires. The plant employs about 1,000 people and consumes more than 10% of the electricity in the state of New South Wales.
According to the publication, the funding is intended to last for 10 years, and the costs will be split equally between the federal government and the New South Wales state government. The plant’s owners are expected to invest up to $1.1 billion in capital improvements. Another $100 million is planned to be allocated toward decarbonization and measures to support the state’s power grid.
For more breaking news, follow the UA.News Telegram channel.
The plan is also linked to power purchase agreements with the state-owned company Snowy Hydro. As part of the program, nearly 3 GW of new power generation capacity is expected to be created.
Tomago produces up to 590,000 metric tons of aluminum per year. The metal is used for consumer and industrial packaging, building materials, solar panels, and wind turbines. In 2021, the company announced its intention to transition almost entirely to renewable energy by the end of the decade.
Prime Minister Anthony Albanese and New South Wales Premier Chris Minns are scheduled to visit Tomago on Thursday. Industry Minister Tim Ayres, who participated in the negotiations, is also expected to join the announcement. National Party leader Matt Canavan criticized the large-scale government support for industrial enterprises, stating that businesses must have a sustainable economic foundation.
