BY OLI GOELDNER
More than 1,000 direct and 5,000 indirect jobs have been secured, with a deal finally struck over the continuation of Tomago Aluminium smelter.
In a visit to the site on Thursday, the Prime Minister spoke to hundreds of workers and local union members, confirming the federal and state government had agreed to invest $2.5 billion into the smelter over the next decade.
Owning company Rio Tinto announced in October 2025, the smelter would likely have to close as it was unable to secure a competitive electricity contact.
Now, the funding will continue operations beyond the facility's scheduled closure on 31 December 2028.
As part of the deal, Tomago Aluminium agreed to invest at least $1.1 billion into the facility, including $100 million to drive further decarbonisation activities at the smelter and undertake an innovative demand-response to support the NSW grid.
The state government's contribution is capped at $1.225 billion over 10 years from 2029.
The smelter is the country's largest single electricity user, taking up more than 10 per cent of the NSW grid alone.
Anthony Albanese said the joint investment will underpin nearly three gigawatts of new renewable generation and firming capacity.
"This site isn't just important for Newcastle and the Hunter, it's a critical asset for the country and our manufacturing future," he said.
"To the workers here, what you do strengthens our country and strengthens our resilience.
"Aluminium is an essential product and will be even more into the future."
NSW Premier Chris Minns echoed the Prime Minister's statements.
"The Hunter has powered NSW and helped build this country for generations," said Premier Minns.
"This agreement is about making sure it remains an industrial and manufacturing powerhouse for generations to come."
Electrical Trades Union NSW/ACT organiser Brad McDougall said the announcement comes as an enormous relief to workers.
"Thousands of families rely on Tomago," he said.
"This announcement finally gives them confidence that there's a future for them in the Hunter.
"The local community has been campaigning tirelessly for the smelter to be protected, and today that hard work has finally paid off."
