Australia commits $1.7bn to keep Rio Tinto aluminum smelter open

Key facts

• Australia's federal and New South Wales governments will provide A$2.5 billion to the Tomago aluminum smelter.
• The funding is equivalent to US$1.76 billion.
• The agreement secures the smelter's operation until 2038.
• Rio Tinto will invest A$1.1 billion in the Tomago facility.
• The smelter will transition to 100% renewable energy by 2033.

The Australian federal government and the New South Wales government are jointly providing A$2.5 billion (US$1.76 billion) to ensure the continued operation of Rio Tinto's Tomago aluminum smelter. This significant financial commitment secures the smelter's future until 2038. As part of the agreement, Rio Tinto itself will invest A$1.1 billion into the facility. A key component of the deal is the smelter's transition to utilizing 100% renewable energy sources, a target set to be achieved by 2033. This initiative aims to decarbonize a major industrial operation while preserving jobs and economic activity in the region.