Rio Tinto welcomed an agreement between Tomago Aluminium, the Australian Government and the New South Wales Government to secure long-term operations for Australia's largest aluminium smelter.

The agreement locks in a 10-year power purchase agreement for electricity supply to the Tomago smelter. The arrangement will begin following the expiry of the current electricity contract on 31 December 2028, with electricity to be supplied by 100 per cent renewable sources from 2033.

To support the framework, Tomago Aluminium will invest A$1.1 billion in real terms in the smelter through to 2038, which includes A$100 million dedicated to decarbonisation initiatives. Once the electricity supply transitions fully to renewable sources in 2033, the shift is projected to reduce the smelter's Scope 1 and 2 operating carbon emissions by 7.1 million tonnes annually.

The smelter will also continue providing large-scale demand response services to the New South Wales electricity system to help manage system stress and integrate renewable energy.

"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.

It means Australia keeps a critical piece of sovereign manufacturing capability, while helping Tomago Aluminium continue competitively producing the aluminium needed for the global energy transition."

— Jérôme Pécresse, Rio Tinto Aluminium & Lithium Chief Executive

Tomago Aluminium is an independently managed joint venture owned by Rio Tinto with a 51.55 per cent stake, alongside Gove Aluminium Finance holding 36.05 per cent and Norsk Hydro holding 12.4 per cent. Founded in 1983, the facility produces up to 590,000 tonnes of aluminium annually, representing nearly 40 per cent of Australia's total production, and directly employs approximately 1,000 people alongside 200 full-time contractors.

The arrangement follows a similar partnership secured in March 2026 for the Boyne aluminium smelter in Queensland, giving Australia's two largest aluminium smelters secured pathways to cost-competitive, low-carbon power beyond their current contracts.

Read the full announcement: Agreement to secure long-term future of Tomago Aluminium