Rio Tinto secures long-term future of Tomago smelter with A$1.1 billion investment and renewable power deal

Rio Tinto PLC has welcomed a long-term power agreement that will keep Australia’s largest aluminium smelter operating until 2038, backed by A$1.1 billion of investment and a transition to 100% renewable electricity from 2033. The agreement between Tomago Aluminium, the Australian Government and the New South Wales Government provides a pathway for the smelter to remain internationally competitive after its existing electricity contract expires on December 31, 2028. Tomago will enter a 10-year power purchase agreement (PPA) extending electricity supply through to 2038, with renewable sources supplying 100% of its electricity from 2033. A$1.1 billion investment backs long-term operations Under the arrangements, Tomago Aluminium will invest A$1.1 billion in real terms in the smelter between now and 2038, including A$100 million earmarked for decarbonisation initiatives. Once the operation moves to 100% renewable electricity in 2033, Rio Tinto expects the change to reduce Tomago’s Scope 1 and 2 operating carbon emissions by 7.1 million tonnes annually. Tomago is also New South Wales’ largest electricity user and will continue providing large-scale demand response services, allowing it to reduce consumption during periods of stress on the electricity system. Rio Tinto Aluminium & Lithium chief executive Jérôme Pécresse said the agreement secured the smelter’s long-term future while supporting Australian manufacturing, skilled employment and supply certainty for customers. “It means Australia keeps a critical piece of sovereign manufacturing capability, while helping Tomago Aluminium continue competitively producing the aluminium ne...