Rio Tinto’s CEO to meet the Federal and State ministers of Australia to decide on Tomago Aluminium’s future
Jean-Sebastien Jacques, CEO, Rio Tinto, will be meeting the federal and State Government ministers of Australia about to discuss on the future of Tomago Aluminium smelter.
Mr Jean-Sebastien will meet the New South Wales government representatives coming week as the smelter is confronting a threat of existence due to the demand for high power and costs. The global push for zero emissions and an uncertain Australian energy future is also included in the threat.
The meeting is coming up just after weeks Rio Tinto pledged $1.5 billion over the next five years to neutralise its greenhouse gas emissions and become a net-zero emitter by 2050, raising even more concerns about the future of its high-emissions smelters.
Mr Jean-Sebastien has already met with Angus Taylor, Federal Energy Minister. The minister did not reject the news that the Federal government is considering $300 million spend to elongate the life of Liddell coal-fired power station until 2026.
The smelter employs around 950 staffs on the direct payroll and nearly 200 on contract basis and contributes $1.5 billion annually to the Australian economy and $800 million it contributes locally each year.
Matt Kean, NSW Environment Minister on 5th March’20 stated: "I want to do everything I can to ensure Tomago keeps open and we keep these critical jobs in the Hunter."
"That means delivering cheap reliable electricity which is entirely what I'm focused on, now and into the future."
Tony Wood, Energy Analyst of Grattan Institute said: “the aluminium industry's claims of being uncompetitive because of high power prices are likely to be at least partly true even if other issues such as ageing plants and competition from plants with access to very cheap hydropower also adds to the existential threat".
Mr Wood added: "Governments may be tempted to provide some support for such technologies through initiatives like the Federal Government's yet-to-be-announced Technology Roadmap.”
"There is a policy rationale for such support. However, that rationale must be balanced by a clear assessment of the prospect and the timeframe for commercial viability.”
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