.jpg)
12 hours ago
1
Article content
(Bloomberg) — Rio Tinto Group is seeking a multibillion-dollar government bailout for its Tomago aluminum smelter — Australia’s largest electricity user — due to spiraling energy costs, the Australian Financial Review reported.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The talks center on the smelter’s electricity contract for 2026 to 2029 and the federal government’s production tax credits, the newspaper reported Saturday, citing unidentified sources familiar with the discussions. One person interviewed by the AFR said any bailout package will likely be “more sophisticated” than a direct subsidy and that talks are mainly being conducted with the New South Wales state government.
Article content
Article content
Article content
Tomago, majority-owned by Rio, uses about 12% of New South Wales’ power supply, according to the world’s second-biggest mining company. It’s aiming for renewables to contribute to more than 50% of the smelter’s electricity needs by 2030, and aspires to eradicate fossil fuels from the plant by 2035.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The smelter is Australia’s biggest aluminum producer, generating up to 590,000 tons a year. A request for comment sent to Rio out of working hours wasn’t immediately answered.
Article content
Australian Prime Minister Anthony Albanese in January announced A$2 billion ($1.3 billion) in funding to create Green Aluminum Production Credits to help the nation’s smelters switch to renewable energy before 2036.
Article content
Prices of the verstaile, lightweight metal have been volatile amid President Donald Trump’s tariff agenda, and are down 4% since the start of the year. This week, the US leader doubled levies on aluminum imports to 50%.
Article content
Albanese, whose center-left Labor government was re—elected last month, has described Trump’s move as “an act of economic self harm by the United States that will increase the cost for consumers” in the US.
Article content
Advertisement 1
English (US)