Australia’s Albanese Pledges Deal to Save Rio Aluminum Plant

Article content(Bloomberg) — The owners of Australia’s largest aluminum smelter have agreed to upgrade the plant as part of a government-backed rescue package aimed at keeping operations running beyond 2028.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentPrime Minister Anthony Albanese visited the Tomago facility on Friday to pledge financial support, months after majority owner Rio Tinto Group warned that soaring energy costs could force the smelter to close when an existing electricity supply contract expires later this decade.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentRio — together with its partners Gove Aluminium Finance Ltd. and Norsk Hydro ASA — will spend at least A$1 billion ($666.5 million) on maintenance and upgrades as a condition of the state’s backing. It will also investigate decarbonization opportunities for the smelter, the government said in a statement.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentAlbanese said the federal government and authorities in New South Wales would work with the smelter to secure a long-term, fixed-price power contract for the facility. Separate arrangements will be made to accelerate renewable energy generation and storage for it.Article content“We are working with the NSW government to make sure that there is a long-term energy solution to go forward beyond 2028,” Albanese said earlier on Friday at a media conference carried by Australian TV.Article contentRio’s Australia-listed shares were trading up 2.3% by 2:59 p.m. Sydney time.Article contentHigher energy costs have hurt the aluminum industry worldwide, leading to a wave of closures or cutbacks. In October, Rio said it had begun a consultation with more than 1,000 employees at Tomago to discuss the future of the plant, which has operated for more than four decades.Article contentThe announcement reflects collaborative work to address “one of the most complex energy challenges facing Australian industry”, Rio’s Chief Executive Officer Simon Trott said in a statement. Rio owns just over half of the Tomago plant.Article content—With assistance from Michael Heath.Article content(Adds details on support package throughout.)Article contentTrending CRA penalized taxpayer for repeated failure to report income Personal Finance Canadian households boost their wealth to another record high of $18.4 trillion with ‘supercharged' financial asset growth Wealth U.S. trade deficit unexpectedly shrinks to smallest since 2020 Economy Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. CRA penalized taxpayer for repeated failure to report income Personal Finance Canadian households boost their wealth to another record high of $18.4 trillion with ‘supercharged' financial asset growth Wealth U.S. trade deficit unexpectedly shrinks to smallest since 2020 Economy Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth