Australia's largest aluminium smelter, Tomago, is reportedly set to receive a major bailout package worth as much as A$2.5bn. Prime Minister Anthony Albanese and New South Wales Premier Chris Minns are expected to announce the joint federal-NSW funding injection on Thursday morning.
The deal comes as rising energy costs have put the immediate viability of the site, which employs around 1,000 workers, in doubt. Rio Tinto, the resources giant, indicated in December it was contemplating ceasing operations at the Tomago smelter at the end of its current electricity supply contract.
The funding injection is anticipated to be split equally between the federal government and New South Wales. The deal is also expected to include up to A$1bn in capital improvements from the site's owners and create approximately 2.5GW of new energy supply.