Rio Tinto eyes bailout for Australian aluminium smelter
CANBERRA: Rio Tinto Group is seeking a multi-billion-dollar government bailout for its Tomago aluminium smelter – Australia’s largest electricity user – due to spiraling energy costs, the Australian Financial Review reports.
The talks centre on the smelter’s electricity contract for 2026 to 2029 and the federal government’s production tax credits, the newspaper reported last Saturday, citing unidentified sources.
One person interviewed by the Auatralian newspaper said any bailout package would likely be “more sophisticated” than a direct subsidy the government and that talks are mainly being conducted with the New South Wales state government.
Tomago, majority-owned by Rio, uses about 12% of New South Wales’ power supply, according to the world’s second-biggest mining company.
