Tomago aluminium pushes for a final call on RET

As the fate of RET still remains in the dark, Tomago Aluminium is making fresh attempts to urge the MPs and senators to reach a final decision on the case soon requesting a 100 percent exemption for the aluminium industry to be effective from January 1, 2015.

The energy-intensive aluminium industry has been the biggest sufferer having paid more than $500 million in Renewable Energy Target (RET) costs already (since 2001) with Tomago alone has paying $120 million.

Matt Howell, the CEO of Tomago says that the extra cost imposed by RET had been difficult to digest at a time when aluminium was already suffering.

“The Renewable Energy Target costs us around $25 million per annum at Tomago. Affordable energy is critical for aluminium smelters. Removing regulatory costs, such as the RET, would help secure the long-term future of aluminium smelting in Australia,” he said.

The RET imposition has been a bother for the Australian aluminium industry as the additional costs weighs down the profit margins and makes it difficult to compete with other global players who do not have to incur these additional costs. If there are no changes made it the RET, Tomago Aluminium will have to pay another $120 million in terms of RET costs over the next five years which is a burden for a company that employs 950 direct and another 900 indirect employees in the Hunter Valley.

The company contributes $1.7 billion per annum to the Hunter economy.