Rio Tinto Plc has welcomed a tripartite agreement between Tomago Aluminium, the Australian Government and the New South Wales Government to lock in long-term power supply and operational funding for Australia’s largest aluminium smelter.

The arrangements secure reliable, internationally competitive power for the Tomago operations until 2038. Under the deal, Tomago Aluminium will enter into a 10-year power purchase agreement for electricity supply starting immediately after the current contract expires on 31 December 2028. Supply will transition to 100 per cent renewable sources from 2033.

To support the extended operating horizon, Tomago Aluminium will invest A$1.1 billion in real terms into the smelter through to 2038, including A$100 million dedicated specifically to decarbonisation initiatives. The facility will also continue providing large-scale demand response services to the New South Wales electricity system to help manage grid stress during periods of high demand.

Once the 10-year power purchase agreement shifts entirely to renewable electricity in 2033, the operational changes will reduce the smelter’s Scope 1 and 2 carbon emissions by 7.1 million tonnes per year.

“This agreement secures Tomago Aluminium's long-term future, supporting Australian manufacturing, skilled jobs and the Hunter community, as well as providing security of supply to the smelter’s global customers.” — Jérôme Pécresse, Rio Tinto Aluminium & Lithium Chief Executive

The Tomago arrangement follows a similar partnership secured in March 2026 for the Boyne aluminium smelter in Queensland. With both agreements in place, Rio Tinto’s two largest Australian aluminium smelters now have secured pathways to long-term, low-carbon power beyond their current contracts.

Tomago Aluminium is an independently managed joint venture owned 51.55 per cent by Rio Tinto, alongside Gove Aluminium Finance Ltd holding 36.05 per cent and Norsk Hydro holding 12.4 per cent. Founded in 1983 and located approximately 13 kilometres west of Newcastle, the smelter produces up to 590,000 tonnes of aluminium annually—representing nearly 40 per cent of Australia's total production—while directly employing around 1,000 workers and 200 full-time equivalent contractors.

Read the full announcement: Rio Tinto welcomes agreement to secure long-term future of Tomago Aluminium