• Tomago Aluminium will invest A$1.1 billion ($770Million) through 2038, including A$100 million ($70 million) for decarbonisation initiatives.
• The smelter will transition to 100% renewable electricity from 2033, cutting expected Scope 1 and 2 emissions by 7.1 million tonnes annually.
• A new 10-year power purchase agreement will keep Australia’s largest aluminium smelter operating through 2038, protecting a major domestic manufacturing asset and thousands of jobs.

Rio Tinto has secured a pathway to keep Australia’s largest aluminium smelter operating through 2038. The agreement combines long-term electricity supply, government support and A$1.1 billion of investment.

Tomago Aluminium will enter a 10-year power purchase agreement after its existing electricity contract expires at the end of 2028. The smelter will then progressively shift toward renewable power before reaching 100% renewable electricity from 2033.

The agreement involves Tomago Aluminium, the Australian Government and the New South Wales Government. It is designed to keep the energy-intensive facility competitive while cutting emissions from one of Australia’s largest industrial electricity users.

A$1.1 Billion Investment Supports Long-Term Operations

Tomago will invest A$1.1 billion in real terms between now and 2038. Of that total, A$100 million has been allocated specifically to decarbonisation initiatives.

The power transition will deliver a substantial emissions benefit. Once Tomago reaches 100% renewable electricity in 2033, Rio Tinto expects Scope 1 and 2 operating emissions to fall by 7.1 million tonnes each year.

Tomago is the largest electricity user in New South Wales. Its role within the grid extends beyond consumption.

The smelter will continue providing large-scale demand response services. These allow Tomago to reduce electricity use when the power system is under pressure. That flexibility will become increasingly valuable as renewable generation expands across the Australian grid.

Rio Tinto Aluminium & Lithium chief executive Jérôme Pécresse said the arrangement would protect industrial capacity while supporting demand for lower-carbon materials.

“It means Australia keeps a critical piece of sovereign manufacturing capability, while helping Tomago Aluminium continue competitively producing the aluminium needed for the global energy transition,” Pécresse said.

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Tomago Anchors Australia’s Aluminium Supply Chain

Tomago Aluminium sits about 13 kilometres west of Newcastle and has operated since 1983. The plant can produce up to 590,000 tonnes of aluminium each year.

That accounts for almost 40% of Australia’s aluminium production, making the facility strategically important for domestic manufacturing and export markets.

The smelter directly employs around 1,000 people. It also supports about 200 full-time equivalent contractors and an estimated 5,000 indirect jobs.

Rio Tinto owns 51.55% of the independently managed Tomago joint venture. Gove Aluminium Finance holds 36.05%, while Norsk Hydro owns the remaining 12.4%.

The agreement follows a similar arrangement reached in March 2026 for Rio Tinto’s Boyne aluminium smelter in Queensland.

Together, Tomago and Boyne are Australia’s two largest aluminium smelters. Both now have pathways to lower-carbon electricity beyond their current power contracts.

That provides greater certainty across Rio Tinto’s Australian aluminium supply chain, which spans bauxite mining, alumina refining and smelting.

Renewable Power Becomes an Industrial Strategy

Tomago’s existing electricity supply agreement with AGL runs until December 31, 2028. The new 10-year PPA will take effect after that contract expires.

For governments, the arrangement links industrial policy with energy transition goals. Aluminium production is electricity intensive, making access to reliable and competitively priced clean power central to the sector’s future.

For companies and investors, Tomago illustrates how long-term PPAs can support both decarbonisation and industrial continuity. The structure also reduces exposure to future power-price uncertainty while providing greater visibility over emissions reductions.

The A$1.1 billion investment program will continue through 2038 as renewable electricity becomes the foundation of Tomago’s operations.

With Australia seeking to retain domestic manufacturing while lowering industrial emissions, the Tomago agreement offers a model with wider relevance. Heavy industry will increasingly depend on long-term clean power contracts, grid flexibility and coordinated public policy to remain globally competitive.