Tomago smelter considers closure as energy prices continue to rise

ABC NEWS (Australia)

There's uncertainty over the future of Australia’s largest aluminium smelter. Tomago aluminium has begun a consultation process with employees on the potential future of its operations near the New South Wales city of Newcastle.

Transcript

00:00Tomigo Aluminium has started consultations with its about 1,000 employees about the future

00:07of operations here at the plant. Currently, Tomigo is New South Wales' biggest user of

00:12electricity. The company says electricity accounts for more than 40% of its costs. Its

00:18current electricity contract ends in 2028. So over the last few years, the company has

00:23been in negotiations with the energy market and key stakeholders about finding an economically

00:29viable energy solution going forward beyond 2029. But the company says coal-fired and renewable

00:36prices are set to significantly increase from 2029, making Tomigo unviable. There is no definitive

00:44decision about what the future holds for Tomigo. Closure is possible at the end of 2028, but

00:51the company says no decision has been made yet. CEO Jerome Dozzell says negotiations are ongoing

00:57with those key stakeholders and the energy market, but he says a long-term solution is

01:02what's needed.

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