New South Wales Premier Chris Minns says his government remains committed to securing the future of Australia’s largest aluminium smelter but is still waiting to learn how much the state will be expected to contribute to the rescue package.
Prime Minister Anthony Albanese visited Tomago Aluminium in December, announcing that a long‑term energy supply deal was being finalised between the Commonwealth, NSW and Rio Tinto. The agreement is intended to keep the smelter the country’s single largest electricity user operating amid soaring energy costs. At the time, neither the prime minister nor Industry and Innovation Minister Tim Ayres disclosed the financial details, saying negotiations were ongoing.
Four months later, the package is yet to materialise.
It is understood the federal government is pursuing a model similar to the recent Boyne Smelter deal in Queensland, where the state and Commonwealth agreed to a 50:50 split, each contributing $1 billion to help the facility transition to renewable energy and remain operational until at least 2040.
Speaking at an industry event in the Hunter last week, Mr Ayres said the Boyne agreement offered a “useful road‑map” for Tomago, arguing that joint investment from NSW would send a strong signal to private investors. “It worked for Queensland jobs and it will work here in the Hunter too,” he said, adding that the economic case for supporting Tomago was clear.
The smelter, which employs thousands directly and indirectly, is considered critical to the region’s industrial base. Premier Minns reiterated that NSW is committed to keeping the operation running but said the state is still waiting for clarity on its expected financial role.
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