Source : Perth Now news
The Albanese government is “confident” a deal will be reached to save the struggling Tomago Aluminium smelter, Industry and Innovation Minister Tim Ayres says as unions demand certainty for the more than 1000 jobs at risk.
The federal and NSW governments have not yet agreed a multibillion-dollar rescue package for the Hunter Valley smelter despite Anthony Albanese pledging to save it during a visit late last year.
While funding was set aside in last week’s NSW state budget, it was not enough to meet the federally proposed 50-50 deal, which includes using Snowy Hydro to underwrite renewables projects to power Tomago.
It would reportedly cost taxpayers at least $300m a year over a decade.
Mr Ayres said on Thursday “we’re working closely” with NSW and insisted the Albanese government understood “the importance of this facility for the Hunter Valley and for Australia”.
“We’ve just secured the future of the Boyne Island aluminium smelter, smaller and a little bit older, with a billion dollars from the commonwealth government and a billion dollars from the Crisafulli Queensland government,” he told ABC radio.
Under that deal, owner Rio Tinto agreed to underwrite $7.5bn in new renewable energy and storage in Queensland.
Rio Tinto also holds a majority stake in Tomago Aluminium.
Hailing it “an economic slam dunk in productivity and growth terms for Queensland”, Mr Ayres said a deal “can deliver the same outcome here in the Hunter Valley for one of Australia’s most important industrial facilities”.
“And I’m confident we will,” he said.
“We’re working through complex commercial and technological questions with News South Wales.
“We’ll keep at the table. It’s a vital Australian asset.”
Like the Boyne Island smelter, Tomago Aluminium’s troubles stem from rising power prices that the Coalition attributes to Labor’s renewables drive.
Rio Tinto said it would need to close the facility by 2028 if it could not lock in an affordable long-term power source.
It supports at least 5000 indirect jobs.
The Australian Workers Union, which represents most of the smelter’s thousand-strong workforce, said it would push Labor to close a deal at the upcoming NSW Labor State Conference in Sydney.
