$2.5bn Tomago lifeline to save 1,000 jobs

A joint investment from the federal and NSW governments has ensured the ongoing operation of an aluminium smelter in Tomago, preserving numerous jobs in the region.

Speaking at Tomago Aluminium yesterday (13 August), Prime Minister Anthony Albanese noted the investment, cost-shared between the federal and state governments, will further spark numerous indirect jobs around the country.

He said: “Aluminium is an essential product and will be even more important into the future, which is why it’s absolutely critical that today’s agreement makes sure that this facility that has been so important for the Hunter, 1,000 direct jobs, but 5,000 indirect jobs in this region on top of that, but tens of thousands of jobs, if not hundreds of thousands of jobs”.

A joint media release on the same day clarified the involvement of NSW Premier Chris Minns, as well as the support of Minister for Industry and Innovation and Minister for Science Tim Ayres; Minister for Climate Change and Energy Chris Bowen; NSW Minister for Climate Change and Energy Penny Sharpe; NSW Minister for the Hunter Yasmin Catley; Member for Paterson Meryl Swanson; and Member for Port Stephens Kate Washington.

Minns said: “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.”

Ayres said: “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 investment is intended to transition the smelter to renewable energy; as the state’s biggest electricity user, this is anticipated to decarbonise approximately 10 per cent of the NSW electricity grid.

Unions have unanimously praised the deal, noting that workers need to be considered in Australia’s industrial future.

According to the Australian Council of Trade Unions (ACTU), the agreement shows Australia can cut emissions while protecting regional jobs.

ACTU president Michele O’Neil said: “Australians want action on climate change, and they also want good, secure jobs in their communities.”

“This is what Future Made in Australia looks like in practice. Supporting local jobs, backing regional communities and investing in the industries that will help drive Australia’s industrial future.”

Similarly, the Electrical Trades Union (ETU) said the investment will lead to job creation in energy construction and beyond, with the union’s national secretary, Michael Wright, adding: “Workers in Australia’s heavy industries have the skills to create the capable, resilient future that our country is seeking to build. Without them, we cannot make steel, aluminium, copper, critical minerals, or other key industrial inputs that run our economy.”

Wright also noted that privatised energy markets cannot supply the low-cost, large-scale energy that would make the Australian industry competitive.

“In an era where electricity is as crucial to the national economy as currency itself, that is what workers need, it’s what industry needs, and it’s what the country needs,” he said.

Rio Tinto Aluminium & Lithium chief executive Jérôme Pécresse said: “This agreement secures Tomago Aluminum’s long-term future, supporting Australian manufacturing, skilled jobs and the Hunter community, as well as providing security of supply to the smelter’s global customers.”

Unions also noted that the agreement ended months of uncertainty for more than 1,000 Tomago workers and those whose livelihoods depend on the smelter. In reference to the government’s December promise to work with Rio Tinto on a long-term solution for the smelter, Australian Workers’ Union (AWU) national secretary Paul Farrow said in December last year: “This is a pivotal moment for Australian manufacturing.”

“For months, we’ve been saying that Tomago isn’t just another industrial site. It’s the test case for whether Australia is serious about having a manufacturing future.”

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