### Australia's Aluminium Industry Faces Crisis: Tomago Smelter's Future in Jeopardy The Tomago Aluminium Smelter, Australia's largest, is at risk of closure due to soaring energy costs and a lack of viable solutions for sustainable power supply. Owned by Rio Tinto, the smelter has been unable to find a path to maintain operations beyond its current electricity contract, which expires in 2028. This situation has prompted discussions with employees about potential closure, raising alarms about the pace of renewable energy development in the region. The implications of this closure could be significant, affecting jobs and the broader aluminium market in Australia [https://www.abc.net.au/news/2025-10-28/tomago-aluminium-smelter-may-close-due-to-cost-of-energy/105944466][https://www.freemalaysiatoday.com/category/business/2025/10/28/australias-largest-aluminum-smelter-could-close-says-rio-tinto]. ### Structure of the Current Situation and Implications 1. **Energy Costs and Viability**: The smelter's operations are becoming "not commercially viable" due to high energy prices, leading to consultations about its future [https://www.theguardian.com/australia-news/2025/oct/28/tomago-aluminium-smelter-potential-closure-rio-tinto-jobs-future]. 2. **Renewable Energy Alternatives**: There is a pressing need for faster delivery of renewable energy solutions to support the smelter's operations and prevent closure [https://www.intouchmagazine.com.au/single-post/tomago-aluminium-closure-talks-sound-an-alarm]. 3. **Government and Industry Response**: Federal officials, including Industry Minister Tim Ayres, are exploring all options to prevent the closure, including potential financial support [https://newsfeel.com/not-commercially-viable-aluminium-giant-faces-potential-closure]. 4. **Broader Economic Impact**: The potential closure of Tomago could have significant repercussions for the aluminium industry in Australia, affecting jobs and economic stability [https://www.worldenergynews.com/news/rio-tinto-warns-uncertain-future-for-australia-767075]. ### Supporting Evidence and Data - **Energy Price Trends**: The smelter's operational costs have escalated significantly, making it difficult to sustain profitability. - **Consultation with Employees**: Ongoing discussions indicate a serious consideration of closure, reflecting the urgency of the situation [https://www.goulburnpost.com.au/story/9098658/major-aluminium-smelter-in-talks-over-possible-closure]. - **Government Initiatives**: The federal government is under pressure to act quickly to support the transition to renewable energy sources to ensure the smelter's viability [https://www.world-today-news.com/tomago-smelter-closure-energy-prices-and-renewables]. ### Conclusion: A Critical Juncture for Tomago Aluminium Smelter 1. **Immediate Threat**: The Tomago Aluminium Smelter is facing a potential closure due to unsustainable energy costs, which could lead to significant job losses and economic impact. 2. **Need for Renewable Solutions**: There is an urgent requirement for the development and implementation of renewable energy alternatives to support the smelter's operations. 3. **Government Action Required**: Federal and state governments must act decisively to explore financial and strategic options to prevent the closure and support the aluminium industry. 4. **Long-term Implications**: The outcome of this situation will have lasting effects on Australia's aluminium market and its transition to sustainable energy sources [https://www.freemalaysiatoday.com/category/business/2025/10/28/australias-largest-aluminum-smelter-could-close-says-rio-tinto][https://www.worldenergynews.com/news/rio-tinto-warns-uncertain-future-for-australia-767075].