More than 1,000 Hunter jobs are secure, after the Albanese and the Minns Labor Governments have jointly contributed $2.5 billion to secure the future of aluminium smelting in the region.
The joint investment will deliver a long-term renewable energy solution for the Tomago Aluminium smelter that supports commercially sustainable operations beyond 2028 and accelerates decarbonisation of more than 10 per cent of NSW's electricity grid, supporting and securing the future of one of the state's most important industrial assets.
Tomago Aluminium has agreed to invest at least $1.1 billion in the facility as part of the deal. This includes $100 million to drive further decarbonisation activities at the smelter and undertake an innovative demand-response program to support the NSW grid. This demand-response program aims to position the Tomago smelter as the international leader in electricity demand response and flexibility services.
As part of the agreement, the NSW Government's contribution is capped at $1.225 billion over 10 years from 2029, supporting the long-term future of Tomago and thousands of Hunter jobs.
As a result, Tomago Aluminium will continue operating beyond the expiry of its current electricity supply contract on 31 December 2028, providing certainty for workers, local businesses and the future of the Hunter region.
Tomago Aluminium is Australia's largest single electricity user. Securing a long-term renewable energy pathway for the smelter is critical to preserving nationally significant industrial capability and strengthens Australia's ability to supply the growing global market for low-emissions aluminium.
The joint investment will underpin nearly 3 gigawatts of new renewable generation and firming capacity, strengthening the state's electricity system and supporting long-term energy affordability and reliability for New South Wales.
Australia is one of only a handful of countries with an end-to-end aluminium supply chain, spanning bauxite mining, alumina refining, aluminium smelting through to advanced manufacturing.
As a major value-added export, aluminium supports jobs, investment and industrial capability while playing a critical role in clean energy technologies, advanced manufacturing and national infrastructure.
The arrangements also ensure revenue comes back to the federal government when aluminium prices are high. This means all Australians will benefit from maintaining domestic aluminium capability and sovereignty, with the added benefit of a monetary return on investment from our governments' contributions should aluminium prices rise.
This joint investment from the Albanese and Minns Labor Governments will secure 1,000 direct jobs at Tomago aluminium and 5,000 indirect jobs across the Hunter region, supporting a stronger and more resilient industrial future for New South Wales and Australia.
Quotes Attributed to Prime Minister Anthony Albanese
"In December last year I stood in the rain at Tomago and told the workers 'we have your back'.
"Today, alongside the NSW Government, we deliver on that promise.
"This site isn't just important for Newcastle and the Hunter, it's a critical asset for the country and our manufacturing future.
"I'm proud of the work we've done with the company, with the Minns Labor Government, with local members and with the workers here on site to secure Tomago's future beyond 2028."
Quotes Attributed to New South Wales Premier Chris Minns
"This is a good day for the Hunter. This agreement secures more than 1,000 jobs at Tomago and thousands more that rely on the smelter, and gives the region certainty about its future.
"I want to thank the Prime Minister and the Commonwealth Government. We've worked closely together to get to this point and deliver an agreement that to find a way through and secure the future of Tomago.
"The Hunter has powered NSW and helped build this country for generations. This agreement is about making sure it remains an industrial and manufacturing powerhouse for generations to come.
"This is part of our bigger plan for the Hunter, securing the good jobs and industries that are here today, while investing $12 billion to bring train manufacturing back to the Hunter and create good, secure jobs for decades to come."
Quotes Attributed to Minister for Industry and Innovation and Minister for Science Tim Ayres
"Australia's end to end aluminium industry - from bauxite to complex aluminium finished products - is critical for Australia's national resilience. Tomago is Australia's largest and youngest smelter and is crucial to Australia's industrial future.
"Keeping this capability here in Australia matters. It makes our economy stronger, drives new electricity projects and maintains thousands of good quality blue collar and engineering jobs right here in the Hunter.
"The Albanese Government is delivering a Future Made in the Hunter: good regional jobs, more industrial and energy investment and stronger regional economies."
Quotes Attributed to Minister for Climate Change and Energy Chris Bowen
"Tomago Aluminium has made it clear: to remain competitive and secure its future the smelter needs a reliable and affordable supply of renewable energy, with ageing coal-fired power options being prohibitively expensive.
"We're fighting for the regions and bringing more renewables online faster - so we can deliver the modern and affordable energy grid Australian's deserve and industry needs."
Quotes Attributed to NSW Minister for Climate Change and Energy Penny Sharpe
"This investment secures more than 1,000 local jobs and connects key manufacturing to a long-term pathway to run on renewable energy.
"It shows we can protect the industries and workers that power the Hunter while building a cleaner energy future in NSW."
Quotes Attributed to NSW Minister for the Hunter, Yasmin Catley
"Hunter workers and their families deserve certainty, and we have delivered it.
"Securing Tomago means securing jobs, skills and the future of our region.
"We said these jobs are worth fighting for and today that fight has delivered.
"The Hunter builds things and it powers our state. We have the skills, the workers and the industrial muscle, and I am incredibly proud to be part of a government that is willing to back the Hunter and everything we have to offer."
Quotes Attributed to Member for Paterson Meryl Swanson
"Hunter workers have helped make Tomago Aluminium one of Australia's most important manufacturing assets, and today's announcement provides certainty for the people, families and businesses who depend on it.
"As demand for aluminium continues to grow worldwide, with forecasts suggesting we'll need around 40 percent more of it in the future, it is critical that Australia remains a producer and manufacturer of this essential material.
"We're protecting local jobs, supporting local industry and ensuring the Hunter remains a manufacturing powerhouse for decades to come."
Quotes Attributed to Member for Port Stephens Kate Washington
"This is a massive investment in local families and our local economy. Tomago Aluminium is one of the largest employers in Port Stephens, and securing its future has been an absolute priority for me and the Minns Labor Government."
