Australia commits US$1.76bil to keep Rio Tinto aluminium smelter open
The deal would support 3 gigawatts of new electricity generation, providing the smelter with more affordable and reliable power.
Australia has pledged A$2.5 billion (US$1.76 billion) to ensure that Rio Tinto's Tomago aluminium smelter, the country's largest electricity consumer, remains operational beyond 2028. The deal, to be jointly funded by the federal and New South Wales state governments, will provide 3 gigawatts of new electricity generation for the smelter.
Rio Tinto warned in October that the smelter, which employs over 1,000 full-time staff and 200 contractors, could be forced to close if it fails to secure a commercially viable power supply after 2028. As part of the agreement, Rio Tinto will invest A$1.1 billion in the facility, including A$100 million to enhance its decarbonisation efforts.
The smelter, like many others in Australia, was constructed last century to utilize cheap coal-fired power, but now faces challenges due to the transition to renewable energy sources.
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- Australia commits US$1.76bil to keep Rio Tinto aluminium smelter open freemalaysiatoday.com
