Tomago Aluminium begins employee consultations amid closure risk – 28 october 2025
The Australian aluminium smelter has initiated a formal consultation process with its workforce, acknowledging that it has not yet identified a commercially viable energy supply solution beyond 2028, putting the plant’s future in doubt.
👉 Source: Reuters
Summary :
MELBOURNE, Oct 28 (Reuters) – Rio Tinto (RIO.AX), opens new tab warned on Tuesday that Australia’s largest aluminium smelter, Tomago, may be forced to shut down as it struggles to source power at commercially viable rates beyond 2028 when its current power deal expires.
Tomago Aluminium is the biggest power user in New South Wales state, and like a slew of Australian smelters that are struggling with high energy prices as the country transitions to renewables, it was built last century to take advantage of Australia’s plentiful and cheap coal.
Australia’s metals processing sector has been squeezed by rising energy and labour costs. Earlier this month, the country announced a A$600 million ($389.88 million) bailout over three years for Glencore’s (GLEN.L)
, opens new tab Mount Isa copper smelter and Townsville refinery. Trafigura’s Nyrstar (NYR.BR)
, opens new tab lead and zinc operations and the Whyalla steel plant have also received government support.
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