Nationals Senator Matt Canavan mocks green crusade of Australia's largest aluminium smelter which resulted in likely collapse of mammoth facility
In early June Rio Tinto-owned Tomago facility, Australia's biggest aluminium producer, was seeking billions of dollars in public funds to avert collapse as energy costs plagued local industry.
The NSW government confirmed it was in discussions to stave off the potential collapse of the mammoth smelter as it struggled with crippling power bills and poor availability of renewable energy, with Mr Minns stressing the facility was a strategically important asset for both the state and the country.
However, Tomago smelter workers were informed on Monday that the facility would be forced to close its doors in 2028 or sooner unless a new affordable energy contract was negotiated with the assistance of both the state and federal governments.
Queensland Nationals Senator Matt Canavan posted a side-by-side panel to X of a 2021 report outlining Tomago's push to switch to a predominantly renewable based power supply by 2029, and the Newcastle Herald's article citing the facilities imminent failure with the caption, 'how it started … how it is going.'
In a statement to Skynews.com.au, Mr Canavan railed against the Albanese government's renewable energy agenda and said the policy was driving the nation's industrial and manufacturing base into the ground.
'Soaring power prices from Labor's failing net zero ideology is bringing Australian manufacturing to its knees,' Senator Canavan said.
He said that unless energy prices eased, Tomago would join a long list of large-scale industrial facilities nationwide that would shut down for good.
'Tomago, our nation's largest aluminium smelter, joins manufacturers from right around the nation in shutting unless energy costs come down,' Senator Canavan said.
'Net zero is just not working."
The producer is located north of Newcastle, uses about 10 per cent of NSW's power supply and makes about 37 per cent of Australia's primary aluminium.
The collapse of the massive company could lead to more than 1,000 people losing their jobs, while 5,000 indirect workers could also suffer as a result.
Smelter workers were told by management on Monday that the facilities closure was not a matter of 'if, but when' due to sharp power price rises, according to the Newcastle Herald.
The owners of the facility - the smelter is also part owned by CSR and Hydro Aluminium - have been conducting direct negotiations with NSW Premier Chris Minns and federal authorities to secure a lifeline believed to be in the billions, with the bailout set to be more complex than simply a direct government subsidy.
Rio Tinto's Chief Executive Jakob Stausholm earlier this year flagged concerns about the producer's electricity costs, as he warned power price contracts beyond 2028 would render Tomago unviable.
Premier Minns said in early June that it was 'difficult to speculate about what next steps are' with the NSW government facing calls from unions and industry groups to safeguard the facility's future.
However, the Albanese government has pushed ahead with its plan to move the country's $5.1 billion aluminium industry onto a renewable energy grid to meet its target of lowering emissions by 43 per cent by 2030.
In January the Prime Minister pledged to provide $2 billion in production taxation credits for Australia's four largest aluminium smelters to aid in the renewable energy transition.
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