Rio Tinto secures power deal for Tomago aluminum smelter

Melbourne, Australia - Rio Tinto has secured a power deal for Tomago Aluminium's smelter, which will remain operational until 2038, according to a press release. The agreement, between Tomago Aluminium, the Australian Government, and the New South Wales Government, involves a 10-year power purchase contract starting January 1, 2029, replacing the current deal with AGL.

The smelter will switch to 100% renewable energy sources by 2033. Rio Tinto, holding 51.55% of Tomago Aluminium, has pledged A$1.1 billion in investments over the period, with A$100 million allocated to decarbonization. The facility continues to serve as a demand response system for the New South Wales electricity grid. Tomago Aluminium, a 51.55% stake Rio Tinto owns, produces up to 590,000 tonnes of aluminum annually, constituting about 40% of Australia's production.

The shift to renewable electricity from 2033 will cut the smelter's Scope 1 and 2 emissions by 7.1 million tonnes per year. Prior to this deal, Rio Tinto and Australian governments signed a similar agreement for the Boyne smelter in Gladstone, Queensland, in March 2026. Tomago Aluminium directly employs around 1,000 people and 200 contractors.

Situated 13 kilometers west of Newcastle, New South Wales, Rio Tinto emphasizes the deal's critical role in meeting its 2030 emissions targets, contingent on the timely completion of renewable projects and other commercial negotiations.