Wen Hua Cai Jing·2025-10-28 02:42Core Viewpoint - Rio Tinto's Tomago Aluminium smelter is facing significant pressure from high electricity prices, leading to discussions about the potential cessation of operations after the current power supply contract expires in December 2028 [2][3] Group 1: Operational Challenges - Tomago Aluminium has been exploring viable energy solutions since 2022 but has not found a sustainable path for operations beyond 2028 [2] - Electricity costs currently account for over 40% of Tomago's operational expenses, and proposals received indicate that energy prices will significantly increase starting January 2029, affecting the economic viability of the smelter [2][3] - The consultation process with employees and union representatives will continue until November 21, allowing for feedback before any final decisions are made [3] Group 2: Company Background - Tomago Aluminium, established in 1983, is Australia's largest aluminium smelter, producing up to 590,000 tonnes of aluminium annually, which constitutes nearly 40% of Australia's total aluminium production [3] - The smelter is a joint venture, with Rio Tinto holding a 51.55% stake, Gove Aluminium Finance Ltd at 36.05%, and Norwegian company Hydro at 12.40% [4] - The facility is located in Tomago, approximately 13 kilometers west of Newcastle, New South Wales [5] Group 3: Current Power Supply Contract - Tomago Aluminium's existing power supply contract with AGL is set to expire in December 2028 [6]