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The New South Wales and federal governments have bailed out Australia’s largest aluminium smelter. They'll spend two-and- a-half billion dollars over 10 years to secure the future of Tomago Aluminium. The smelter's owner, Rio Tinto, had threatened to close the facility by 2029, because of rising energy costs.

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00:03The Prime Minister Anthony Albanese and New South Wales Premier Chris Minns visited the
00:08Tomago smelter this morning to tout this $2.5 billion government funded bailout package
00:14for Tomago.
00:15Making sure that there is a future made right here in Australia and a future made right
00:23here in the Hunter.
00:24We will continue to build things in Australia.
00:27We could not turn our back on Tomago.
00:31Now Tomago is owned by Rio Tinto and the company did threaten to close this facility by 2029
00:38citing rising energy costs.
00:41Its current power deal lapses at the end of 2028 and it claimed that it was going to be
00:46too expensive to keep this facility running into the future.
00:51Now the Commonwealth Government and New South Wales Government quickly agreed that this
00:55facility is too important to lose not only for the Hunter's job market, this facility
01:00employs more than a thousand people directly and more than 5,000 indirectly but also the
01:06flow on revenue that comes from this facility in terms of the products that is created and
01:12sold here from Tomago.
01:13It's connected up with not just the jobs that are created directly here but the indirect jobs
01:20that will flow through the manufacturing sector right throughout this country.
01:24Tens of thousands of people employed in this supply chain, a vital national capability that
01:31delivers for workers in our outer suburbs and regions like the Hunter.
01:34Now the Prime Minister Anthony Albanese this morning in defending the scale of the taxpayer
01:40funded bailout, he said that that is just exactly why it is way too important for the Australian
01:46taxpayer to lose.
01:48It is in our national interest to have an economy that has manufacturing that is not dependent
01:55upon something somewhere else occurring because we know that can lead to disruption.
02:01At the moment we have seen the supply chain disruption that has occurred in the Strait
02:06of Hormuz.
02:07There is impact in the entire global economy and what economies are looking at, not just
02:13us but others as well, are looking at is how do they become more resilient.
02:19This funding package will be split down the middle between the New South Wales Government and
02:24the Federal Government.
02:25There was a bit of tit for tat as to how the funding deal would be brokered.
02:29But Premier Chris Minns said that it was eventually agreed that the two governments would split
02:34it down the middle.
02:36We have struck an agreement with the Commonwealth Government around 50-50.
02:39We recognise this is based in New South Wales, it is hugely important for our economy and
02:44the Federal Government has come to the table with a big, big investment.
02:48Which is important both for Tomago and for the Hunter.
02:51But what we were able to do over the last three or four months and I am very grateful for
02:55the
02:55Prime Minister's intervention is solve a range of federal, state financing issues that have
03:00been on the table for a long time.
03:01But the PM stepped in and he solved it and we are very grateful.
03:06There was a large group of workers here at Tomago this morning to welcome the Prime Minister
03:11and hear the announcement.
03:12Some of them that we spoke to, younger workers in particular who were at the start of their
03:17careers say that this was a big relief that they have a little bit more job security into
03:21the future.
03:23And then older workers nearing the end of their careers said that this gives them a path to
03:27their retirement.
03:28This is what we were hoping for, a lot of relief, I think it's actually bore a bit of excitement
03:34as well.
03:35I think everyone's really keen to see what this is going to bring.
03:38So the workers here in the Hunter at Tomago this morning feeling a lot of relief but questions
03:43still remain as to the size of this government funded bailout package going to a private company,
03:50Rio Tinto.
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