13th Aug 2026 01:56
(Alliance News) - Rio Tinto PLC on Thursday announced a new long‑term power agreement designed to secure the future of Tomago Aluminium, Australia's largest aluminium smelter.
Rio owns 51.55% of Tomago Aluminium.
The London-based miner said the agreement, reached between Tomago Aluminium, the Australian government and the New South Wales government, provides long‑term certainty for the smelter, its workforce and the Hunter region by ensuring reliable, internationally competitive electricity supply through to 2038.
Tomago Aluminium will enter a 10‑year power purchase agreement beginning after its current contract with AGL Energy Ltd expires in December 2028, with electricity to be supplied from 100% renewable sources from 2033.
Tomago Aluminium will invest AUD1.1 billion, approximately USD776.9 million, in the smelter between now and 2038, including AUD100 million for decarbonisation initiatives.
Once fully supplied by renewable energy, the smelter's scope 1 and 2 operating emissions are expected to fall by 7.1 million tonnes per year.
As New South Wales' largest electricity user, Tomago Aluminium will also continue providing large‑scale demand response services to support grid stability and renewable integration.
Rio Tinto Aluminium & Lithium Chief Executive Jerome Pecresse said: "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."
Rio Tinto continues to target a 50% reduction in scope 1 and 2 emissions by 2030 from a 2018 baseline, noting that progress remains dependent on timely renewable project delivery and commercial outcomes.
Shares in Rio fell 2.7% to AUD174.59 in Sydney on Friday morning and ended 0.4% higher at 7,525.00 pence in London on Wednesday.
By Judy Amaca, Alliance News reporter Asia-Pacific
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