Australia commits $1.76 billion to keep Rio Tinto aluminium smelter open

Australia on Thursday said it would provide A$2.5 billion to help keep global miner Rio Tinto’s Tomago aluminium smelter, the country’s largest power user, open beyond 2028, as it transitions to renewable generation.
The deal would support 3 gigawatts of new generation for the smelter, with the financial package to be jointly funded by the federal and New South Wales state governments, a government statement said.
The deal includes a new power purchase agreement intended to provide “reliable, internationally competitive” electricity, 100% renewable from 2033, which Rio Tinto said will cut the plant’s direct and indirect carbon emissions by a quarter.
Rio Tinto warned in October that Tomago could be forced to close if it failed to secure commercially viable power beyond 2028.