Key facts
- Australia's largest aluminum smelter, Tomago, will transition to renewable energy by 2033.
- Rio Tinto secured a $2.5 billion government subsidy deal for the transition.
- The deal aims to prevent the smelter's closure due to rising power prices.
- The agreement will support new renewable and firming capacity in New South Wales.
Rio Tinto has finalized a significant deal with the Australian government, securing a $2.5 billion subsidy to transition Tomago, the nation's largest aluminum smelter, to renewable energy sources by the year 2033. This substantial financial commitment is intended to avert the potential closure of the smelter, a facility that has been increasingly threatened by escalating power prices.
The agreement is poised to play a crucial role in underpinning the development of new renewable energy projects and firming capacity within New South Wales. By providing a stable financial framework, the government's investment aims to ensure the long-term viability of the Tomago smelter, a key industrial asset for the region and the country.