Rio Tinto secures $2.5bn government deal to power Australia's largest aluminium smelter with renewables by 2033

Rio Tinto has secured a $2.5 billion subsidy from the Australian federal government and the New South Wales administration to keep its Tomago aluminium smelter operating and to transition the plant to fully renewable electricity by 2033. The agreement, announced by Prime Minister Anthony Albanese and NSW Premier Chris Minns at the Tomago facility near Newcastle, provides a ten‑year, below‑market power‑supply guarantee that will commence when the smelter’s existing coal‑focused contract with AGL expires in December 2028. The financial support is intended to offset the higher cost of renewable energy and to avert the risk of the smelter’s closure, which would have significant economic and employment impacts in the region.

Under the deal, Rio Tinto will replace its current coal‑derived power with a mix of wind, solar and storage solutions, aligning the operation with Australia’s broader decarbonisation targets. The subsidy framework is structured to ensure the plant’s electricity costs remain competitive while delivering measurable emissions reductions. The partnership marks a coordinated effort between industry and government to sustain critical manufacturing capacity and advance the country’s transition to a low‑carbon economy.