Rio Tinto has reached an agreement with the Australian federal government and the New South Wales government to secure a long-term power supply for Tomago Aluminium, Australia's largest aluminium smelter, according to a press release from the company.

Under the arrangement, Tomago Aluminium will enter into a 10-year power purchase agreement (PPA) beginning after the expiry of its current electricity contract with AGL on Dec. 31, 2028, and running through 2038. From 2033, electricity supplied under the PPA will come entirely from renewable sources, which the company says will reduce the smelter's Scope 1 and 2 carbon emissions by 7.1 million tonnes per year.

Tomago Aluminium plans to invest A$1.1 billion in the smelter between now and 2038, including A$100 million designated for decarbonization initiatives.

Tomago Aluminium is an independently managed joint venture owned by Rio Tinto (51.55%), Gove Aluminium Finance Ltd (36.05%), and Norsk Hydro (12.4%). The smelter, located near Newcastle in New South Wales, produces up to 590,000 tonnes of aluminium annually and directly employs around 1,000 people, alongside approximately 200 full-time equivalent contractors.

Rio Tinto Aluminium & Lithium Chief Executive Jérôme Pécresse said the agreement "secures Tomago Aluminium's long-term future, supporting Australian manufacturing, skilled jobs and the Hunter community, as well as providing security of supply to the smelter's global customers."

The Tomago deal follows a March 2026 agreement between Rio Tinto, the Commonwealth government, and the Queensland government to secure long-term power for the Boyne aluminium smelter in Gladstone. Rio Tinto states that Australia's two largest aluminium smelters now have secured pathways to long-term power beyond the expiry of their current electricity contracts.