BY MARLEY RAE
Lake Macquarie MP Greg Piper claims the state government won't be able to meet the Commonwealth's commitment to the Tomago Aluminum smelter.
In December, Prime Minister Anthony Albanese announced the Federal Government will commit to extend the smelter's operations, requesting a 50/50 funding split with the state.
Premier Chris Minns has since outlined a potential $300 to $470 million reserved for the smelter, with the final amount to be announced in next month's state budget.
However, Lake Macquarie MP Greg Piper believes the 50-50 split is an unreasonable request.
"If he thinks it was going to be a 50-50 split with the state, then I think the state should have been involved in those discussions first," Mr Piper said.
"If the state can do it, great, but I suspect they are going to really struggle to find that kind of money.
"If we find that kind of money, it could be used in a better way."
The smelter, which directly employs 1500 workers, announced in October they were weighing up their future amid rising energy prices.
The company, which is majority owned by mining giant Rio Tinto, said it was struggling to see how operations were commercially viable beyond the expiration of its energy contract in 2028.
Mr Piper said an 80-20 split of the costs would be more suitable in the state's favour.
"Typically, major projects are an 80-20 split and I'm sure there are some examples that can been shown where that hasn't been the case," he said.
"We're not really asking for much in this particular case, because Tomago isn't just some local business that benefits NSW, it's the largest aluminum smelter in Australia."
While the federal government has not allocated any funds for Tomago in their recent national budget, a figure is expected to be finalised once the state contribution is confirmed.
