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ARTICLE · 24 DECEMBER 2025

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Tomago Aluminium Smelter - Another Rescue Package For Large Energy Consumers

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

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Many industrial customers face rising energy costs, among other challenges. We look at examples of government support provided so far.

AustraliaEnergy and Natural Resources
Robert Nicholson
Robert Nicholson
Katrina Baker
Katrina Baker
Peter Davis
Peter Davis
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Many industrial customers face rising energy costs, among other challenges. We look at examples of government support provided so far.

Tomago support

The Tomago smelter manages its electricity costs under a contract with AGL that expires in 2028. Reportedly, its owners, Rio Tinto, CSR and Norske Hydro, tested the market for interest in providing a new long term electricity contract from 2028 and found that power costs would double and firm supplies for all of the smelter load might not be available, making the smelter unprofitable. Norske Hydro was reported to have written down its investment to zero. A support package offered earlier this year, said to have a value of $2 billion, was reportedly rejected.

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