Australian Governments to Announce $2.5B Support for Tomago Aluminum Smelter's Future

Published: Aug 12, 2026 14:36

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[SMM Aluminum Express News] Australia’s federal and New South Wales governments are expected to announce a major support package to secure the future of the Tomago aluminum smelter beyond 2028, when its existing electricity contract expires. The package is reported at around A$2.5 billion, shared between the two governments, and is expected to include long-term power arrangements involving government-owned Snowy Hydro. Tomago had warned that rising electricity costs could make operations commercially unviable after 2028. Tomago is Australia’s largest aluminum smelter, producing around 590,000 tonnes per year and consuming roughly 10–12% of New South Wales’ electricity. As part of the arrangement, the smelter’s owners are also expected to commit around A$1 billion in capital and major maintenance investment over the next decade, while the power arrangements would support the plant’s transition toward predominantly renewable electricity.

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