Tomago Aluminium has started a consultation process with employees on the future of its operations.
Since 2022, Tomago Aluminium has tried to identify an economically viable energy solution for when its existing electricity supply contract expires.
Despite extensive engagement and market approaches, Tomago is yet to identify a pathway that supports commercially sustainable operations beyond 2028.
Finding competitively priced energy remains a central challenge, with electricity accounting for more than 40% of Tomago Aluminium’s current operating costs.
The cost of both coal-fired and renewable energy options from January 2029 are estimated increase significantly, fundamentally changing operating economics and leaving the smelter unviable.
As a result, Tomago Aluminium has reached a point where it must contemplate ceasing operations at the end of its current electricity supply contract. However, a decision has not been made about the future of the smelter.
The consultation process will provide employees and union representatives the opportunity to share feedback on this potential pathway before a decision is reached.
Tomago Aluminium CEO, Jérôme Dozol, stated: “We continue to engage with stakeholders on a viable pathway for Tomago. Unfortunately, all market proposals received so far show future energy prices are not commercially viable, and there is significant uncertainty about when renewable projects will be available at the scale we need.
“While no decision has been made, this is a difficult point to reach. Our focus remains on operating safely and giving our people certainty as soon as possible.”
