Rio Tinto Welcomes Plan to Secure Future of Tomago Aluminum Plant

By James Glynn

SYDNEY--Rio Tinto has welcomed a government agreement to secure the future of the Tomago plant, Australia's largest aluminum smelter.

Under the terms, Tomago Aluminium will enter a 10-year power purchase agreement for electricity supply, with the energy to be sourced entirely from renewables starting in 2033.

The new agreement will take effect upon the expiration of the current electricity contract at the end of 2028.

Tomago Aluminium will invest 1.1 billion Australian dollars, equivalent to US$777 million, in the smelter between now and 2038, including A$100 million for decarbonization initiatives.

"This agreement secures Tomago Aluminium's long-term future, supporting Australian manufacturing, skilled jobs and the Hunter community, as well as providing security of supply to the smelter's global customers," said Jerome Pecresse, chief executive of Rio Tinto Aluminium and Lithium.

"It means Australia keeps a critical piece of sovereign manufacturing capability, while helping Tomago Aluminium continue competitively producing the aluminum needed for the global energy transition," he said.

The move follows an earlier agreement reached in March between Rio Tinto, the federal government, and the Queensland government to secure a long-term future for the Boyne aluminum smelter at Gladstone in Australia's north east.

Rio Tinto stated that the agreement strengthens one of the world's largest integrated aluminum supply chains, spanning the company's bauxite mines, alumina refineries and aluminum smelters in eastern Australia.

Tomago Aluminium is an independently managed joint venture owned by Rio Tinto, Gove Aluminium Finance, and Norsk Hydro.

The Tomago plant produces up to 590,000 tonnes of aluminum a year, accounting for nearly 40% of Australia's total aluminum production.

Write to James Glynn at james.glynn@wsj.com

(END) Dow Jones Newswires

August 12, 2026 20:34 ET (00:34 GMT)