Rio Tinto Seeks Government Aid for Tomago Smelter
Global mining giant Rio Tinto is negotiating with Australian government bodies for a substantial financial rescue package to support its Tomago aluminium smelter. The aid aims to address electricity contract concerns and spiraling energy costs, crucial for the facility's future and regional aluminium production.
- Country:
- Australia
Global miner Rio Tinto is actively engaged in discussions with the Australian federal and state governments regarding a multibillion-dollar bailout for its Tomago aluminium smelter situated in New South Wales, according to a report by the Australian Financial Review.
Unnamed sources revealed that the negotiations are focused on the smelter's electricity contracts for the years 2026 to 2029, as well as federal production tax credits. Key stakeholders, including the offices of New South Wales Premier Chris Minns and Prime Minister Anthony Albanese, have yet to offer official statements in response.
This smelter, which uses about 10% of New South Wales' power for its operations, is a joint venture also owned by CSR and Hydro Aluminium. The Australian government has committed to aiding its aluminium sector with production credits to transition towards renewable energy by 2036.
(With inputs from agencies.)
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