Minister says he is optimistic about Tomago Aluminium's future, despite increasing energy prices

The Advertiser

a day ago

Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition.
It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs.
Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation.
The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power.
It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal.
The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits.
Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL.
Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks.
Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector.
"I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said.
"We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future."
The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition.
Mr Ayres acknowledged more work was needed to realise the initiative's goal.
"We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said.
"We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do."
The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050.
A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040.
Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition.
It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs.
Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation.
The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power.
It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal.
The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits.
Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL.
Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks.
Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector.
"I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said.
"We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future."
The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition.
Mr Ayres acknowledged more work was needed to realise the initiative's goal.
"We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said.
"We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do."
The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050.
A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040.
Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition.
It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs.
Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation.
The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power.
It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal.
The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits.
Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL.
Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks.
Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector.
"I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said.
"We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future."
The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition.
Mr Ayres acknowledged more work was needed to realise the initiative's goal.
"We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said.
"We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do."
The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050.
A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040.
Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition.
It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs.
Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation.
The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power.
It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal.
The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits.
Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL.
Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks.
Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector.
"I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said.
"We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future."
The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition.
Mr Ayres acknowledged more work was needed to realise the initiative's goal.
"We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said.
"We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do."
The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050.
A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040.