Rio Tinto may hand over the largest aluminum plant in Australia to the state

Australian corporation Rio Tinto has entered into negotiations with the New South Wales state administration and the federal government regarding the possible nationalization of Australia’s largest aluminum plant, Tomago.
The plant, with a capacity of 590 thousand tons per year, accounts for about 12% of electricity consumption in the state. At the same time, Rio Tinto points out that high tariffs and low prices for aluminum call into question the future of the plant.

According to media reports, the negotiations are discussing a contract for the supply of electricity in 2026-2029. In addition, the Australian government has promised to allocate about $1.3 billion to subsidize projects aimed at converting aluminum plants to renewable energy sources by 2035. However, it is not a fact that this will help reduce energy costs.

Rio Tinto previously stated that it would make a decision on the future of the Tomago plant by the middle of this year. Moreover, if the enterprise comes under state control, it will happen through a more complex mechanism than a simple transfer of property. In addition, the enterprise has minority shareholders – CSR and Hydro Aluminium.

Source: IIS “Metal Supply and Sales”