The owners of Australia’s biggest aluminum smelter, including Rio Tinto Group, have secured a government bailout of A$2.5 billion ($1.8 billion) to keep the plant operating as it grapples with high energy costs. Majority owner Rio and its partners at the Tomago smelter in New South Wales obtained financial support from both the federal and state governments. The venture will invest A$1.1 billion in the smelter, according to reports in the Sydney Morning Herald and Australian Financial Review.

The investment will make the plant more flexible, allowing it to reduce power consumption at times of high demand on the grid. The bailout aims to preserve jobs and maintain a key industrial asset in the region. The deal underscores the challenges faced by energy-intensive industries in Australia, where rising electricity prices have threatened the viability of smelters.

Rio Tinto and its partners have committed to modernizing the facility while benefiting from government subsidies. The agreement includes provisions for improved efficiency and capacity to adjust operations in response to grid conditions.