Australia announces 1.7 billion USD bailout for aluminum smelter

Australian Prime Minister Anthony Albanese has announced a 2.5 billion AUD (approximately 1.7 billion USD) bailout package designed to sustain the operations of the country’s largest aluminum smelter, the Tomago Aluminium Smelter in New South Wales.

The 10-year plan will be funded equally by the federal Labor government and the New South Wales state government. This intervention follows indications from the smelter's owner, Rio Tinto, that operations might cease once current electricity supply contracts expire in 2028. To secure the facility's future, Tomago Aluminium and its owners have committed to an additional 1.1 billion AUD in investment.

Albanese emphasized the necessity of the move to protect manufacturing jobs and ensure Australia remains a producer rather than just a consumer at the end of the supply chain. The arrangement is also expected to provide additional clean energy to the region.