What is the core agreement between Rio Tinto and the Australian governments regarding the Tomago smelter’s energy transition?

Rio Tinto struck a $2.5bn taxpayer-backed deal with the federal and New South Wales governments for a 10-year below-market power supply guarantee—starting after its existing coal-focused electricity contract with AGL ends in December 2028—to enable Australia’s largest aluminium smelter at Tomago to run entirely on renewable energy by 2033, cutting its annual greenhouse gas emissions by 7.1 million tonnes.

Why is the Tomago smelter considered critical to NSW’s economy and energy system?

Tomago is Australia’s largest single electricity user—consuming more than 10% of total generation in NSW—and directly employs about 1,000 people while indirectly supporting around 5,000 more; its continued operation is deemed vital to the local and broader economy, with NSW Premier Chris Minns warning that its closure would withdraw massive economic stimulus and risk deindustrialisation akin to what occurred in South Australia under the Liberals or Michigan under the Democrats.

Australia’s largest aluminium smelter to run on renewables by 2033 after Rio Tinto strikes $2.5bn taxpayer bailout deal

Aug 13, 2026

Rio Tinto secured a $2.5 billion government subsidy to transition its Tomago aluminium smelter to 100% renewable energy by 2033, averting potential closure while reducing annual greenhouse gas emissions by 7.1 million tonnes.

theguardian

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