Latest news with #Tomago
Sky News AU
a day ago
- Business
- Sky News AU
Energy crisis forces Labor to mull 'band aid solutions' for failing metal smelters as energy crisis plagues manufacturers
The Albanese government has been accused of considering 'band aid solutions' for major manufacturers struggling to stay afloat amid soaring power prices under Labor's renewable energy transition. Industry Minister Tim Ayres said Labor could provide taxpayer funds and long-term loans to assist ailing smelters crippled by energy costs and China-instigated trade distortions. 'The truth is, if these facilities didn't exist, governments would be trying to build them,' Mr Ayres told The Australian Financial Review. It comes as many smelters and refineries struggle to stay afloat in Australia. Rio Tinto-owned Tomago, which is Australia's largest aluminium producer, is seeking billions of dollars from the federal and NSW governments amid high power prices and as cost-effective and consistent renewables remain largely unavailable. Two Australian smelters owned by international minerals and metals producer Nyrstar are also under threat and the local CEO has begged various state and federal governments for a handout as losses mount to "tens of millions a month". Meanwhile, Glencore's local smelters and refineries similarly struggle in a massive blow to the Albanese government's Future Made in Australia plans. Centre for Independent Studies policy analyst Zoe Hilton told this revelation from Mr Ayres showed how Labor's net zero plans were hurting local industries. 'The government has shot itself in the foot on energy policy,' Ms Hilton said. 'The consequences of its commitment to a wind- and solar-dominated grid are being acutely felt by smelters and the pain will continue until the root cause is addressed. 'Equity injections and long-term loans for smelters are merely band aid solutions that will force taxpayers to pay twice – first for underwriting renewable energy projects and second for propping up industries that can't afford electricity price hikes driven by renewables.' Labor 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. 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. Concerns over Australia's long term manufacturing capabilities also arose from AI Group chief executive Innes Willox who warned that 'bailouts cannot be for business as usual'. 'Short-term relief measures must be complemented by a long-term perspective that addresses the energy, skills and technology challenges weighing on our metals sector,' Mr Willox told He said the upcoming productivity roundtable hosted by Treasurer Jim Chalmers, where the Albanese government's second term economic agenda will come under the microscope, is crucial for examining problems plaguing manufacturing in Australia. 'It is a seminal moment for industry and a legacy moment for the country as a whole,' the AI Group boss said. 'We just can't keep going as we have been because what's got us to this point isn't going to make us successful in the future.' Soaring energy prices have particularly hurt the metals industry in Australia since the pandemic. Mr Willox said manufacturer gas costs are up 48 per cent for the past five years and for trade exposed industries like metals, passing these customers onto consumers is not possible. Other concerns about metal smelting in Australia come from Nyrstar boss Matthew Howell, who recently asked the government for help upgrading the company's facilities to make it more competitive in the global market. Mr Howell said the Chinese government subsidises companies to purchase Australian materials at prices local smelters could not afford. China then subsidises the processing of these materials and enforces export controls on the finished metals, hurting Australian producers in the process. Meanwhile, Glencore's head of corporate affairs Cass McCarthy lamented the company's ability to compete while high energy and labour costs hurt its profitability. 'This is bigger than Glencore and goes to the heart of state and federal government critical minerals policies when you have a number of smelters and refineries across Australia clearly at breaking point,' Ms McCarthy said, per The Australian. The NSW government in June confirmed it was in talks to save Tomago, which uses about 10 per cent of the state's power supply and makes about 37 per cent of the nation's aluminium. 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.' 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 Advertiser
16-06-2025
- Business
- The Advertiser
Has Newcastle lost its small-town feel and shifted into a bona fide city?
I RECENTLY celebrated three years since returning to live in Newcastle, having been away for almost three decades. My main revelation upon return was that Newcastle had acquired that indefinable quality that comes from being a city rather than a large country town. At sunset recently, I stopped halfway across the Cowper Street bridge to contemplate Newcastle's changing skyline. With its combination of moored yachts and mid to high-rise buildings, the view of the waterfront and West End verged on glamorous. OK, maybe I'm exaggerating, but I'm sure you'll allow that it's a great improvement on the grim neighbourhood some of us grew up with. The same can be said for many other parts of "town". The other day, I met an older Novocastrian who used to have professional offices at the top of town. He remembered the East End as being "awful", a grimy mélange of derelict warehouses, railway sidings, and pollution from the Zaara Street power station. Now, of course, the area is a tourist mecca and a highly successful event space. The shared paths along the foreshore and beaches are thronged, and the renovated ocean baths and new skate park have been enthusiastically embraced. Much remains to be done, of course. The slow death of street front retail has left large stretches of Hunter Street struggling to find a new purpose, Beaumont Street has its challenges, and while Newcastle's light rail line was the right idea, it remains a job only partly done. I'll report back in another three years. THE owners of Tomago Aluminium have warned that high energy prices may put the plant's future in jeopardy. That could cost 1500 direct jobs and an extra 5000 across the region ("Minister optimistic on smelter despite surging energy prices", Newcastle Herald 12/6). With energy prices to rise from July 2025, Tomago seems to be seeking government subsidy (taxpayer money) to keep operating profitably. Additionally, Alcoa plans to close down an aluminium smelter and two mills in WA this year due to high energy prices and production costs. With the US placing tariffs on Australian aluminium and Indonesia now expanding its cheap production, the future of our aluminium industry is not bright. Without reliable and affordable 24/7 energy supplies, productivity in Australia will continue to decline. It does not take an Einstein to figure that out. GRAHAME Danaher ("Tackling adversity way to go", Letters 10/6), and Steve Barnett ("Costs are high, but working hard tough to beat", Letters 5/6): of course, tackling adversity is a great part of life, and overcoming it is the greatest high. However, once 3.5 times the median national income was enough for a house deposit. In 2024, it's 8.6 times. Outrageously, concessional superannuation greatly favours the wealthy, people who do not need it, while the taxation tab is picked up by our younger taxpaying community. A parent recently expressed his bewilderment in the Sydney Morning Herald that, in retirement and with few expenses, he paid no tax, while his child with so many living expenses paid $37,000 on similar income. Employment is now far less stable, for a far more precarious life, for many. What toll is this taking on the social fabric? The recent Fair Work Commission decision improved real incomes by only 1 per cent, with much of the wage rise lost to inflation. Like me, Mr Danaher and Mr Barnett should be very thankful for how the times favoured them. At the start of his working life, Mr Barnett could pocket $60 of his pay. Sounds pretty good to me. MY parents didn't have botox injections, false eyelashes, manicures, exfoliation, waxing, cosmetic surgery, day spas, and that was just Dad. Throw in streaming services, exotic holidays, regular nights out, extra TVs, the biggest barbecue backyard smokehouse, spa, pool, four-car garage, double-storey house, jet ski, social media profile, designer clothes and handbags (are you reading this, honey? I hope not). I'm sure you people get my drift. I know it's hard these days, but it's not impossible to buy a home and start small, dream big. We are dreaming of a small, nice retirement apartment near the beach. It might be a cave overlooking the Hawkesbury River if Mac Maguire's prediction of 1000 years of Labor government comes true. Good luck, I hope you achieve your goals. MATT Ophir says he does not see any mosques being firebombed or sprayed with graffiti ("Targets of hate speak volumes", Letters, 12/6). What we are seeing is Palestine being destroyed and tens of thousands of its innocent citizens being slaughtered. Unfortunately, the hard-line government in Israel has used the bad behaviour of Hamas to invade the entire country. Yes, bad behaviour on both sides. I congratulate our government's brave decision to call out poor behaviour on both sides. I also congratulate the Albanese government on their response to the amazing clown act happening in America. Go Albo. WITH all due respect to Cr Clausen ("Councillors have duty to speak up", Letters, 10/6), the community's response to the Davidson Report, on display in these pages, shows it did nothing to restore public trust. Nor did accusing the lord mayor of spreading misinformation in any way stem the community outrage that drove the former lord mayor out of office. AN article on an Upper Hunter solar farm said it would cost $300 million and create five permanent jobs. I wonder where the thousands of permanent jobs will go when Mt Arthur closes, if five cost so much? APPARENTLY, Greta Thunberg and her cohort will be shown a video of the Hamas attack on Israel as justification for the invasion of Gaza. I wonder if they will also justify their response to the October 7 attack? The US wants us to spend more on defence, but surely the $368 billion for nuclear submarines more than covers us? I am not sure that Donald Trump knows much about the submarine deal, though. I RECENTLY celebrated three years since returning to live in Newcastle, having been away for almost three decades. My main revelation upon return was that Newcastle had acquired that indefinable quality that comes from being a city rather than a large country town. At sunset recently, I stopped halfway across the Cowper Street bridge to contemplate Newcastle's changing skyline. With its combination of moored yachts and mid to high-rise buildings, the view of the waterfront and West End verged on glamorous. OK, maybe I'm exaggerating, but I'm sure you'll allow that it's a great improvement on the grim neighbourhood some of us grew up with. The same can be said for many other parts of "town". The other day, I met an older Novocastrian who used to have professional offices at the top of town. He remembered the East End as being "awful", a grimy mélange of derelict warehouses, railway sidings, and pollution from the Zaara Street power station. Now, of course, the area is a tourist mecca and a highly successful event space. The shared paths along the foreshore and beaches are thronged, and the renovated ocean baths and new skate park have been enthusiastically embraced. Much remains to be done, of course. The slow death of street front retail has left large stretches of Hunter Street struggling to find a new purpose, Beaumont Street has its challenges, and while Newcastle's light rail line was the right idea, it remains a job only partly done. I'll report back in another three years. THE owners of Tomago Aluminium have warned that high energy prices may put the plant's future in jeopardy. That could cost 1500 direct jobs and an extra 5000 across the region ("Minister optimistic on smelter despite surging energy prices", Newcastle Herald 12/6). With energy prices to rise from July 2025, Tomago seems to be seeking government subsidy (taxpayer money) to keep operating profitably. Additionally, Alcoa plans to close down an aluminium smelter and two mills in WA this year due to high energy prices and production costs. With the US placing tariffs on Australian aluminium and Indonesia now expanding its cheap production, the future of our aluminium industry is not bright. Without reliable and affordable 24/7 energy supplies, productivity in Australia will continue to decline. It does not take an Einstein to figure that out. GRAHAME Danaher ("Tackling adversity way to go", Letters 10/6), and Steve Barnett ("Costs are high, but working hard tough to beat", Letters 5/6): of course, tackling adversity is a great part of life, and overcoming it is the greatest high. However, once 3.5 times the median national income was enough for a house deposit. In 2024, it's 8.6 times. Outrageously, concessional superannuation greatly favours the wealthy, people who do not need it, while the taxation tab is picked up by our younger taxpaying community. A parent recently expressed his bewilderment in the Sydney Morning Herald that, in retirement and with few expenses, he paid no tax, while his child with so many living expenses paid $37,000 on similar income. Employment is now far less stable, for a far more precarious life, for many. What toll is this taking on the social fabric? The recent Fair Work Commission decision improved real incomes by only 1 per cent, with much of the wage rise lost to inflation. Like me, Mr Danaher and Mr Barnett should be very thankful for how the times favoured them. At the start of his working life, Mr Barnett could pocket $60 of his pay. Sounds pretty good to me. MY parents didn't have botox injections, false eyelashes, manicures, exfoliation, waxing, cosmetic surgery, day spas, and that was just Dad. Throw in streaming services, exotic holidays, regular nights out, extra TVs, the biggest barbecue backyard smokehouse, spa, pool, four-car garage, double-storey house, jet ski, social media profile, designer clothes and handbags (are you reading this, honey? I hope not). I'm sure you people get my drift. I know it's hard these days, but it's not impossible to buy a home and start small, dream big. We are dreaming of a small, nice retirement apartment near the beach. It might be a cave overlooking the Hawkesbury River if Mac Maguire's prediction of 1000 years of Labor government comes true. Good luck, I hope you achieve your goals. MATT Ophir says he does not see any mosques being firebombed or sprayed with graffiti ("Targets of hate speak volumes", Letters, 12/6). What we are seeing is Palestine being destroyed and tens of thousands of its innocent citizens being slaughtered. Unfortunately, the hard-line government in Israel has used the bad behaviour of Hamas to invade the entire country. Yes, bad behaviour on both sides. I congratulate our government's brave decision to call out poor behaviour on both sides. I also congratulate the Albanese government on their response to the amazing clown act happening in America. Go Albo. WITH all due respect to Cr Clausen ("Councillors have duty to speak up", Letters, 10/6), the community's response to the Davidson Report, on display in these pages, shows it did nothing to restore public trust. Nor did accusing the lord mayor of spreading misinformation in any way stem the community outrage that drove the former lord mayor out of office. AN article on an Upper Hunter solar farm said it would cost $300 million and create five permanent jobs. I wonder where the thousands of permanent jobs will go when Mt Arthur closes, if five cost so much? APPARENTLY, Greta Thunberg and her cohort will be shown a video of the Hamas attack on Israel as justification for the invasion of Gaza. I wonder if they will also justify their response to the October 7 attack? The US wants us to spend more on defence, but surely the $368 billion for nuclear submarines more than covers us? I am not sure that Donald Trump knows much about the submarine deal, though. I RECENTLY celebrated three years since returning to live in Newcastle, having been away for almost three decades. My main revelation upon return was that Newcastle had acquired that indefinable quality that comes from being a city rather than a large country town. At sunset recently, I stopped halfway across the Cowper Street bridge to contemplate Newcastle's changing skyline. With its combination of moored yachts and mid to high-rise buildings, the view of the waterfront and West End verged on glamorous. OK, maybe I'm exaggerating, but I'm sure you'll allow that it's a great improvement on the grim neighbourhood some of us grew up with. The same can be said for many other parts of "town". The other day, I met an older Novocastrian who used to have professional offices at the top of town. He remembered the East End as being "awful", a grimy mélange of derelict warehouses, railway sidings, and pollution from the Zaara Street power station. Now, of course, the area is a tourist mecca and a highly successful event space. The shared paths along the foreshore and beaches are thronged, and the renovated ocean baths and new skate park have been enthusiastically embraced. Much remains to be done, of course. The slow death of street front retail has left large stretches of Hunter Street struggling to find a new purpose, Beaumont Street has its challenges, and while Newcastle's light rail line was the right idea, it remains a job only partly done. I'll report back in another three years. THE owners of Tomago Aluminium have warned that high energy prices may put the plant's future in jeopardy. That could cost 1500 direct jobs and an extra 5000 across the region ("Minister optimistic on smelter despite surging energy prices", Newcastle Herald 12/6). With energy prices to rise from July 2025, Tomago seems to be seeking government subsidy (taxpayer money) to keep operating profitably. Additionally, Alcoa plans to close down an aluminium smelter and two mills in WA this year due to high energy prices and production costs. With the US placing tariffs on Australian aluminium and Indonesia now expanding its cheap production, the future of our aluminium industry is not bright. Without reliable and affordable 24/7 energy supplies, productivity in Australia will continue to decline. It does not take an Einstein to figure that out. GRAHAME Danaher ("Tackling adversity way to go", Letters 10/6), and Steve Barnett ("Costs are high, but working hard tough to beat", Letters 5/6): of course, tackling adversity is a great part of life, and overcoming it is the greatest high. However, once 3.5 times the median national income was enough for a house deposit. In 2024, it's 8.6 times. Outrageously, concessional superannuation greatly favours the wealthy, people who do not need it, while the taxation tab is picked up by our younger taxpaying community. A parent recently expressed his bewilderment in the Sydney Morning Herald that, in retirement and with few expenses, he paid no tax, while his child with so many living expenses paid $37,000 on similar income. Employment is now far less stable, for a far more precarious life, for many. What toll is this taking on the social fabric? The recent Fair Work Commission decision improved real incomes by only 1 per cent, with much of the wage rise lost to inflation. Like me, Mr Danaher and Mr Barnett should be very thankful for how the times favoured them. At the start of his working life, Mr Barnett could pocket $60 of his pay. Sounds pretty good to me. MY parents didn't have botox injections, false eyelashes, manicures, exfoliation, waxing, cosmetic surgery, day spas, and that was just Dad. Throw in streaming services, exotic holidays, regular nights out, extra TVs, the biggest barbecue backyard smokehouse, spa, pool, four-car garage, double-storey house, jet ski, social media profile, designer clothes and handbags (are you reading this, honey? I hope not). I'm sure you people get my drift. I know it's hard these days, but it's not impossible to buy a home and start small, dream big. We are dreaming of a small, nice retirement apartment near the beach. It might be a cave overlooking the Hawkesbury River if Mac Maguire's prediction of 1000 years of Labor government comes true. Good luck, I hope you achieve your goals. MATT Ophir says he does not see any mosques being firebombed or sprayed with graffiti ("Targets of hate speak volumes", Letters, 12/6). What we are seeing is Palestine being destroyed and tens of thousands of its innocent citizens being slaughtered. Unfortunately, the hard-line government in Israel has used the bad behaviour of Hamas to invade the entire country. Yes, bad behaviour on both sides. I congratulate our government's brave decision to call out poor behaviour on both sides. I also congratulate the Albanese government on their response to the amazing clown act happening in America. Go Albo. WITH all due respect to Cr Clausen ("Councillors have duty to speak up", Letters, 10/6), the community's response to the Davidson Report, on display in these pages, shows it did nothing to restore public trust. Nor did accusing the lord mayor of spreading misinformation in any way stem the community outrage that drove the former lord mayor out of office. AN article on an Upper Hunter solar farm said it would cost $300 million and create five permanent jobs. I wonder where the thousands of permanent jobs will go when Mt Arthur closes, if five cost so much? APPARENTLY, Greta Thunberg and her cohort will be shown a video of the Hamas attack on Israel as justification for the invasion of Gaza. I wonder if they will also justify their response to the October 7 attack? The US wants us to spend more on defence, but surely the $368 billion for nuclear submarines more than covers us? I am not sure that Donald Trump knows much about the submarine deal, though. I RECENTLY celebrated three years since returning to live in Newcastle, having been away for almost three decades. My main revelation upon return was that Newcastle had acquired that indefinable quality that comes from being a city rather than a large country town. At sunset recently, I stopped halfway across the Cowper Street bridge to contemplate Newcastle's changing skyline. With its combination of moored yachts and mid to high-rise buildings, the view of the waterfront and West End verged on glamorous. OK, maybe I'm exaggerating, but I'm sure you'll allow that it's a great improvement on the grim neighbourhood some of us grew up with. The same can be said for many other parts of "town". The other day, I met an older Novocastrian who used to have professional offices at the top of town. He remembered the East End as being "awful", a grimy mélange of derelict warehouses, railway sidings, and pollution from the Zaara Street power station. Now, of course, the area is a tourist mecca and a highly successful event space. The shared paths along the foreshore and beaches are thronged, and the renovated ocean baths and new skate park have been enthusiastically embraced. Much remains to be done, of course. The slow death of street front retail has left large stretches of Hunter Street struggling to find a new purpose, Beaumont Street has its challenges, and while Newcastle's light rail line was the right idea, it remains a job only partly done. I'll report back in another three years. THE owners of Tomago Aluminium have warned that high energy prices may put the plant's future in jeopardy. That could cost 1500 direct jobs and an extra 5000 across the region ("Minister optimistic on smelter despite surging energy prices", Newcastle Herald 12/6). With energy prices to rise from July 2025, Tomago seems to be seeking government subsidy (taxpayer money) to keep operating profitably. Additionally, Alcoa plans to close down an aluminium smelter and two mills in WA this year due to high energy prices and production costs. With the US placing tariffs on Australian aluminium and Indonesia now expanding its cheap production, the future of our aluminium industry is not bright. Without reliable and affordable 24/7 energy supplies, productivity in Australia will continue to decline. It does not take an Einstein to figure that out. GRAHAME Danaher ("Tackling adversity way to go", Letters 10/6), and Steve Barnett ("Costs are high, but working hard tough to beat", Letters 5/6): of course, tackling adversity is a great part of life, and overcoming it is the greatest high. However, once 3.5 times the median national income was enough for a house deposit. In 2024, it's 8.6 times. Outrageously, concessional superannuation greatly favours the wealthy, people who do not need it, while the taxation tab is picked up by our younger taxpaying community. A parent recently expressed his bewilderment in the Sydney Morning Herald that, in retirement and with few expenses, he paid no tax, while his child with so many living expenses paid $37,000 on similar income. Employment is now far less stable, for a far more precarious life, for many. What toll is this taking on the social fabric? The recent Fair Work Commission decision improved real incomes by only 1 per cent, with much of the wage rise lost to inflation. Like me, Mr Danaher and Mr Barnett should be very thankful for how the times favoured them. At the start of his working life, Mr Barnett could pocket $60 of his pay. Sounds pretty good to me. MY parents didn't have botox injections, false eyelashes, manicures, exfoliation, waxing, cosmetic surgery, day spas, and that was just Dad. Throw in streaming services, exotic holidays, regular nights out, extra TVs, the biggest barbecue backyard smokehouse, spa, pool, four-car garage, double-storey house, jet ski, social media profile, designer clothes and handbags (are you reading this, honey? I hope not). I'm sure you people get my drift. I know it's hard these days, but it's not impossible to buy a home and start small, dream big. We are dreaming of a small, nice retirement apartment near the beach. It might be a cave overlooking the Hawkesbury River if Mac Maguire's prediction of 1000 years of Labor government comes true. Good luck, I hope you achieve your goals. MATT Ophir says he does not see any mosques being firebombed or sprayed with graffiti ("Targets of hate speak volumes", Letters, 12/6). What we are seeing is Palestine being destroyed and tens of thousands of its innocent citizens being slaughtered. Unfortunately, the hard-line government in Israel has used the bad behaviour of Hamas to invade the entire country. Yes, bad behaviour on both sides. I congratulate our government's brave decision to call out poor behaviour on both sides. I also congratulate the Albanese government on their response to the amazing clown act happening in America. Go Albo. WITH all due respect to Cr Clausen ("Councillors have duty to speak up", Letters, 10/6), the community's response to the Davidson Report, on display in these pages, shows it did nothing to restore public trust. Nor did accusing the lord mayor of spreading misinformation in any way stem the community outrage that drove the former lord mayor out of office. AN article on an Upper Hunter solar farm said it would cost $300 million and create five permanent jobs. I wonder where the thousands of permanent jobs will go when Mt Arthur closes, if five cost so much? APPARENTLY, Greta Thunberg and her cohort will be shown a video of the Hamas attack on Israel as justification for the invasion of Gaza. I wonder if they will also justify their response to the October 7 attack? The US wants us to spend more on defence, but surely the $368 billion for nuclear submarines more than covers us? I am not sure that Donald Trump knows much about the submarine deal, though.
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.'
The Advertiser
11-06-2025
- Business
- The Advertiser
Minister says he is optimistic about Tomago Aluminium's future, despite increasing energy prices
Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition. It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs. Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation. The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power. It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal. The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits. Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL. Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks. Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector. "I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said. "We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future." The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition. Mr Ayres acknowledged more work was needed to realise the initiative's goal. "We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said. "We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do." The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050. A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040. Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition. It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs. Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation. The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power. It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal. The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits. Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL. Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks. Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector. "I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said. "We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future." The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition. Mr Ayres acknowledged more work was needed to realise the initiative's goal. "We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said. "We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do." The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050. A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040. Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition. It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs. Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation. The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power. It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal. The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits. Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL. Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks. Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector. "I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said. "We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future." The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition. Mr Ayres acknowledged more work was needed to realise the initiative's goal. "We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said. "We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do." The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050. A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040. Newly appointed industry minister Tim Ayres said he is optimistic about the ongoing viability and future of Tomago Aluminium, but acknowledged governments must work with industry to meet the challenges of the clean energy transition. It follows reports that the smelter, which employs 1500 people and supports an extra 5000 across the region, is in talks to secure billions of dollars in support from the NSW and federal governments to help it manage rising energy costs. Tomago chief executive Jerome Dozol warned last November that high energy prices were putting the plant's future in jeopardy and called for urgent action to secure its continued operation. The smelter produces about 600,000 tonnes of aluminium, which requires a constant power supply of 950 megawatts, or about 12 per cent of the state's power. It has committed to shifting as close as possible to running on renewable energy by 2035, but the company has also stated that it will need certainty of supply to achieve the goal. The Australian Financial Review has reported that current talks are focused on the smelter's electricity contract for 2026 to 2029 and the design of the federal government's production tax credits. Mr Ayres, who is due to visit the smelter on Friday, said he was unable to comment about discussions between Tomago and its energy provider, AGL. Tomago and its part-owner, Rio Tinto, have also declined to comment about the talks. Mr Ayres said governments and industry needed to work collaboratively on the challenges facing the energy-intensive aluminium sector. "I'm optimistic about its future, but I'm not complacent; everybody's got a part to play here. I've got a role to play, the Commonwealth government and NSW government, the electricity suppliers, Tomago themselves and the supply chain around them," he said. "We've all got a common interest in a shared vision for what is a core industrial asset for the Hunter Valley and a core part of the region's economic future." The government pledged $2 billion in production tax credits in January for Australia's four aluminium smelters: Tomago, Bell Bay, Boyne and Victoria's Portland, which is operated by Alcoa, to help with the energy transition. Mr Ayres acknowledged more work was needed to realise the initiative's goal. "We've got vast solar and wind resources and a government that has stepped in with a production credit to make sure that local aluminium production is competitive globally," he said. "We are fully engaged; the decision (about production credits) has been made, and it's of vast scale. Of course, we're going to keep working with the sector on design and make sure it delivers the outcome and the impact that it's designed to do." The government estimates the Australian-made aluminium sector will grow from $5.1 billion to $6 billion per year in revenue by 2050. A 2023 Accenture report showed a thriving future metals industry could deliver up to $122 billion a year in export revenue to Australia's economy by 2040.
