Latest news with #RioTinto-owned
Sky News AU
5 days ago
- Business
- Sky News AU
Boyer Paper Mill owner David Marriner warns 340 positions under threat as limited renewable energy eats into budget
The owner of Australia's last paper mill has issued a desperate plea for his 340 employees as his business struggles with energy problems. David Marriner, the CEO of Boyer Paper Mill in Tasmania, lamented the setbacks he has faced as he tries to electrify his business. Boyer Paper Mill currently spends about $12m per year on coal which the company imports from Newcastle after it lost its Tasmanian source three years ago, according to Mr Marriner. It sought to install electric boilers to greatly reduce emissions but the state-owned power company Hydro Tasmania said it did not have enough power to supply the mill. 'To my amazement, I sit in the commercial strip on Collins St to be told there's simply not the power,' Mr Marriner said. Boyer was unable to secure the power despite the federal government investing $9m into the paper mill in part to facilitate its decarbonisation. Mr Marriner stressed the paper mill needed the same power arrangements as fellow industrial users that are offered competitive prices. 'What we're keen to have (is) nothing more or nothing less than the prices that are being provided to the other two or three equivalent major suppliers,' he said. 'We just want the same terms and conditions. We don't want to be paying more than what our competitors are. I'm absolutely shattered and disappointed.' He said if the mill was unable to secure hydro power from Tasmania the business would be 'unsustainable' as the company forks out $12m per year for coal from NSW. 'The political system forced the closure and access to coal in Tasmania to us,' Mr Marriner said. "Why should 340 employees take the burden of stupid decisions? Why should they lose jobs?" Prime Minister Anthony Albanese earlier this year pledged $24m to the mill as part of Labor's lavish pre-election cash splashes. Of that cash injection, about $9m was to "stabilise its operations and prepare major investments to decarbonise and diversify its production". 'Boyer Paper Mill is an iconic part of Tasmania's manufacturing story,' the Prime Minister said in April. 'It was Australia's first ever newsprint mill built in the 1940s, and thousands of Tasmanians have worked here over that time. 'We want to see the mill continue well into the future, and that is why we are committing up to $24m to help Boyer secure local jobs and supply chains and move forward with confidence towards a low-emissions future.' The power price struggles for Boyer Paper Mill comes as a litany of manufacturers around the country struggle to remain viable. Rio Tinto-owned aluminium smelter Tomago located north of Newcastle, is reportedly seeking billions of dollars in public funds to prevent collapse. Meanwhile, a zinc and lead producer Myrstar Australia is also seeking government handouts as it loses "tens of millions a month".
Sky News AU
13-06-2025
- Business
- Sky News AU
Nuclear Science expert Dr Adi Paterson criticises Labor's current energy policy and targets for zero carbon renewables amid soaring power bills
A top Australian energy scientist has questioned how Labor's current energy policy could deliver cost effective solutions to consumers on dilute renewables amid soaring power bills. The former head of the Australian Nuclear Science and Technology Organisation (ANSTO), Dr Adi Paterson, told Sky News on Friday evening that the cheapest form of energy is nuclear plus renewables and as few batteries as possible. Despite his expertise in nuclear energy, Mr Paterson said he could not understand how the government thinks its current policy is the best way to provide low cost to consumers. "I cannot understand how our government thinks that the current energy policy, which is based on dilute renewables, can get us to a really reliable low cost to consumers, the cost at the meter," he told Sky News host Steve Price. "This government fundamentally mixes up the cost at the fence of the facility, which is really cheap if you do solar and wind, with the cost of the meter to the consumer, which goes up if you have too much solar and wind. "And we know that the cheapest form of energy working with renewables, not fighting with renewables, is nuclear plus renewables and as few batteries as possible. "We're pursuing this crazy dream which is on the input side of the energy is we want to be a world leader in zero carbon with renewables, which has never been done anywhere and which is a grave mistake." This comes as NSW Premier Chris Minns announced on Thursday the government would hold talks to to save the potential collapse of the nation's largest aluminium smelter as it struggles with crippling power bills and poor availability of renewable energy. Rio Tinto-owned Tomago, located north of Newcastle, is reportedly seeking billions of dollars in public funds to prevent collapse. The producer uses about 10 per cent of NSW's power supply and makes about 37 per cent of Australia's primary aluminium. Its collapse could lead to more than 1,000 people losing their jobs, while 5,000 indirect workers could suffer. NSW Premier Chris Minns stressed Tomago was a 'big employer in NSW, it's a dynamic part of the state, the Hunter and manufacturing is a big part of its future'. 'It's difficult for me to speculate about what the next steps are,' Mr Minns told reporters. 'In order for us to have an effective intervention, we need to have commercial discussions with the owners and operators of (Tomago). That's what we're doing.'
Sky News AU
13-06-2025
- Business
- Sky News AU
NSW Premier Chris Minns confirms talks to save Australia's biggest aluminium producer Tomago amid crippling power bills
The NSW government is in discussions to stave off the potential collapse of the nation's largest aluminium smelter as it struggles with crippling power bills and poor availability of renewable energy. Rio Tinto-owned Tomago, located north of Newcastle, is reportedly seeking billions of dollars in public funds to prevent collapse. The producer uses about 10 per cent of NSW's power supply and makes about 37 per cent of Australia's primary aluminium. Its collapse could lead to more than 1,000 people losing their jobs, while 5,000 indirect workers could suffer. NSW Premier Chris Minns on Thursday stressed Tomago was a 'big employer in NSW, it's a dynamic part of the state, the Hunter and manufacturing is a big part of its future'. 'It's difficult for me to speculate about what the next steps are,' Mr Minns told reporters. 'In order for us to have an effective intervention, we need to have commercial discussions with the owners and operators of (Tomago). That's what we're doing.' Tomago executives have reportedly asked the NSW and federal governments for assistance amid crippling power prices and as cost-effective and consistent renewable alternatives remain largely unavailable. Rio Tinto's chief executive Jakob Stausholm earlier this year flagged concerns about the producer's electricity costs where he warned power price contracts beyond 2028 would render Tomago unviable. The Premier acknowledged there remains 'challenges when it comes to big industries in manufacturing like aluminium and steel'. He cited the soaring energy costs which hurt Australian manufacturers, but also noted the Trump Administration's decision to hit foreign-made steel and aluminium with a 50 per cent tariff. 'Part of it is energy costs, there's no doubt about it, part of it is also rapid and dramatic changes to the global trading system, particularly when it comes to (the United States') decision to slap initially a 50 per cent then 10 per cent hit on inbound steel and aluminium,' Mr Minns said. 'It may well be Australian aluminium and Australian steel is used domestically, or used in other markets across south-east Asia, South America and other places. 'The problem is that if Chinese steel and Chinese aluminium move to a third country and are dumped on another market, even if it's not Australia, it affects our trading partners. 'It's a complicated web, it's probably not going to be solved overnight. But we recognise it's an important employer, and we are having discussions with the owners.' Tomago's struggle with power bills comes as the Albanese government has vowed to make the nation a 'renewable energy superpower' with an energy mix of 82 per cent renewables by 2030 and green energy driving local manufacturing. Labor is looking to boost this through production tax credits for leading Australian aluminium smelters, including Tomago, and give $2 billion back to help with the energy transition. A federal government source told the AFR it was involved in discussions with Tomago over the details of the tax credit design as it looks to alleviate the impacts of soaring power costs. The Centre for Independent Studies' senior policy analyst Zoe Hilton said the government's energy policy was crippling the aluminium sector. 'With power prices in Australia rising higher and higher, it simply doesn't make financial sense to run a smelter here,' Ms Hilton told 'Tomago's current predicament is a direct result of state and federal government plans to shift our grid to mostly intermittent energy sources.'
Sky News AU
10-06-2025
- Business
- Sky News AU
Chris Bowen's energy revolution pushing Australia's heavy industry to the brink with Tomago Aluminium on the verge of collapse
Australia's largest aluminium smelter is on the brink of collapse under the weight of soaring power prices as Energy Minister Chris Bowen continues with his renewables revolution. A report in the Australian Financial Review emerged on Friday that said Rio Tinto-owned Tomago, Australia biggest aluminium producer, is seeking billions of dollars in public funds to avert collapse as energy costs plague local industry. 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 suffer. Tomago executives have reportedly asked the NSW and federal governments for assistance amid crippling power prices and as cost-effective and consistent renewables remain largely unavailable. The damning report sparked concern from the Centre for Independent Studies' senior policy analyst Zoe Hilton who said the government's energy policy was crippling the aluminium sector. 'With power prices in Australia rising higher and higher, it simply doesn't make financial sense to run a smelter here,' Ms Hilton told 'Tomago's current predicament is a direct result of state and federal government plans to shift our grid to mostly intermittent energy sources.' Mr Bowen and Labor have vowed to make the nation a 'renewable energy superpower' with an energy mix of 82 per cent renewables by 2030 and green energy driving local manufacturing. The Albanese government is looking to boost this through production tax credits for leading Australian aluminium smelters, including Tomago, and give $2 billion back to help with the energy transition. A federal government source told the AFR it was involved in discussions with Tomago over the details of the tax credit design as it looks to alleviate the impacts of soaring power costs. Rio Tinto's chief executive Jakob Stausholm flagged concerns about the producer's electricity costs earlier this year where he warned power price contracts beyond 2028 would render Tomago unviable. Ms Hilton said this should come as a brutal warning for the government as it strives to dramatically alter the nation's energy mix. 'The federal government has refused to acknowledge that its plan to make our grid run off 82 per cent renewable energy by 2030 is making energy unaffordable for industrial users, not to mention residential and small business consumers,' Ms Hilton said. 'We are following in the footsteps of Germany, which gets almost half of its power from wind and solar. 'Around 40 per cent of German industrial companies are now considering partly or fully relocating operations abroad due to a lack of affordable and reliable energy. Australia has only just reached over 30 per cent wind and solar. 'We don't have European neighbours with nuclear plants from which to import reliable power as Germany does, so our industries will feel the pain of expensive, unreliable power much earlier in the renewables buildout.' Shadow energy minister Dan Tehan said Labor's ambitious renewables plan could result in job losses at Tomago. 'Spare a thought for the workers at Tomago worried about losing their job because high energy prices, as a result of Labor's obsession with renewable energy, is threatening their livelihood,' Mr Tehan told 'These workers will be worried today about paying the bills and putting food on the table if Tomago is closed because of Labor's higher energy costs. 'Every worker and every business owner in Australia will be looking at Tomago and worrying if their business can survive the exorbitant energy costs under Labor's renewables agenda.' Tomago's turmoil comes as the government looks to shift the aluminium industry to renewable energy while maintaining the operations of the major smelters. The producer was historically powered by cheap coal-fired generators but the shift away from fossil fuels has presented challenges regarding both energy security and power prices. Ms Hilton said Australia needs to ditch the renewables plan if the nation wants to keep heavy industry from moving overseas. 'If we want to minimise electricity costs, new coal plants will be the cheapest way to supply our grid,' Ms Hilton said. 'If industry remains committed to reducing emissions, nuclear plants are the only option to provide the necessary 24/7 power at an affordable price, so the bans will need to be lifted.' Tomago CEO Jerome Dozol in November 2024 said the company urgently needed public help to assist with the smelter's energy bills. 'The price of electricity on offer is too expensive for us to keep operating without government intervention,' Mr Dozol said.
