While most people are pleased with the Australian Government’s financial bailout of Tomago Aluminium, not everyone’s happy.
It appears more than 1,000 jobs at the troubled smelter have been secured, just in time for Christmas, after the Commonwealth confirmed on Friday 12 December it would keep the site running with taxpayer support.
Majority owner Rio Tinto threatened to shut down the plant due to spiralling energy costs after 2028, when its electricity contract ran out.
But, Prime Minister Anthony Albanese said an agreement was reached to keep Tomago Aluminium firing with inexpensive renewable power.
Although, the full details are yet to be revealed.
“This is so important for our national interest,” he explained.
“We need to be more resilient as a national economy… and we need to make sure that we do make more things here.”
However, Labor’s decision was a clear admission it had failed to deliver cheap and reliable energy, according to the Coalition.
“The government cannot keep hiding the bill,” Opposition Leader Sussan Ley said in a joint statement with industry and energy spokesmen Alex Hawke and Dan Tehan.
“They must front up and explain to Australians how much of their money is being used in failed attempts to mop up their failures.”
Tomago Aluminium will also contribute at least $1 billion to upgrade and maintain the facility in the next decade, including identifying opportunities to further decarbonise the smelter.
Hunter-based Nationals Senator, and Federal Shadow Minister for Fisheries and Forestry, Water, and Emergency Management, Ross Cadell hailed the announcement of sorts.
“For more than 40 years, Tomago Aluminium has quietly powered our economy, employing locals, supporting hundreds of businesses and helping to keep the lights on across NSW,” he said.
“So, keeping it open is critical to Australia’s sovereignty… and to the Hunter.
“It’ll also bring some level of comfort to the thousands of people who rely on Tomago Aluminium, including the hundreds of small family businesses that conduct work for the smelter.
“That being said, Rio Tinto only finds itself in this position because of Australia’s absurdly high price of power.
“Labor’s pursuit of an all-renewables economy has decimated our energy-intensive industries and forced jobs offshore.
“The party’s solution to a self-induced end to local industry is more handouts disguised as incentives or presented on billboards under the Future Made in Australia brand.”
Business Hunter CEO Bob Hawes admitted it was encouraging to see the federal government had heeded concerns about the impact of job losses and manufacturing capability if Tomago Aluminium was to close… and was working proactively on a sustainable resolution.
“We believe securing the future of the smelter is of vital strategic importance for the region and the nation,” he said.
“While we understand details of the actual deal are still under negotiation, the announcement shows the government is committed to keeping the plant open.
“But, projects that can replace coal-fired generation capacity and deliver affordable and reliable renewable energy are moving too slowly.
“Without faster progress, we risk losing the very industries that will anchor our transition economy.
“Aluminium is a critical material for defence, infrastructure, transport and renewable energy systems.
“Losing the smelter would be a blow to Australia’s sovereign manufacturing capability and counter to the government’s Future Made in Australia ambitions.”
Mr Hawes added the circumstances that contributed to uncertainty over Tomago Aluminium’s future still posed challenges for manufacturers and energy-intensive industries in the region.
“We have a lot of work to do to ensure the Hunter can achieve decarbonisation without de-industrialisation,” he said.
“However, we can assure all levels of government the region is committed to working collaboratively to achieve answers.”
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