Australian government bailed out Rio Tinto‑controlled Tomago smelter with A$2.5bn ($1.8bn) package after months of negotiations that threatened one of the country’s largest industrial operations. The deal is the latest move by Anthony Albanese’s government to protect its industrial base with taxpayer funds.

Tomago, jointly owned by Rio Tinto, Norsk Hydro and Gove Aluminium, had begun a formal shutdown process last year, even as it held talks over a rescue plan. The smelter uses about 10 per cent of electricity in New South Wales and employs 1,000 workers.

The agreement gives a 10‑year contract to transition to 100 per cent renewable energy by 2033, underpinning investment in the state grid. In return, Tomago Aluminium will invest A$1.1bn into operations until 2038, including A$100mn for decarbonisation.

Albanese said the pact delivers on his promise to protect jobs in the region and safeguards a critical asset for the country’s manufacturing future. The move follows similar bailouts of copper, zinc and steel assets.