Australians face $2.5 billion bill to rescue Rio Tinto smelter
- 1 day ago
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Australian taxpayers will provide $2.5 billion to help keep Rio Tinto’s Tomago Aluminium smelter operating and protect about 1,000 direct jobs.
The federal and NSW governments will each contribute half of the rescue package.
The Newcastle smelter faces closure when its current electricity contract expires on December 31, 2028, with power costs expected to rise further from 2029.
Tomago is Australia’s largest electricity user, consuming more than 10 per cent of NSW’s electricity. Its closure could also put around 5,000 indirect jobs at risk.
Prime Minister Anthony Albanese and NSW Premier Chris Minns said the support was necessary to protect local manufacturing and keep aluminium production in Australia.
As part of the deal, Tomago Aluminium will invest an additional $1.1 billion to reduce energy consumption and increase its use of renewable power.
The agreement has drawn criticism from the opposition, which says the bailout highlights the impact of high electricity prices on Australian industry.
Tomago produces about 590,000 tonnes of aluminium each year, making aluminium Australia’s fifth-largest export commodity. The metal is widely used in cars, aircraft, homes, sporting equipment and beverage cans.
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Source : 9 News
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