Rio Tinto Aluminum Smelter to Get Australian Government Bailout

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessRio Tinto Aluminum Smelter to Get Australian Government BailoutThe owners of Australia’s biggest aluminum smelter, including Rio Tinto Group, are set to receive a government bailout to keep the plant operating as it grapples with high energy costs, according to people familiar with the matter.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — The owners of Australia’s biggest aluminum smelter, including Rio Tinto Group, are set to receive a government bailout to keep the plant operating as it grapples with high energy costs, according to people familiar with the matter.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAfter lengthy talks, majority owner Rio and its partners at the Tomago smelter in New South Wales will get financial support from both the federal and state governments, said the people, who asked not to be named because the discussions were private.An announcement is expected Thursday, including further details of the package and plans for the smelter’s future, they said.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againRio Tinto owns slightly more than half of the Tomago plant, which has produced aluminum for more than 40 years. Gove Aluminium Finance Ltd. and Norsk Hydro ASA also hold stakes in the joint venture that operates the plant.Rio declined to comment, while the Tomago joint venture didn’t respond to a request for comment. The Australian government and the New South Wales state government also didn’t respond immediately when contacted for comment.Higher energy prices have battered the power-intensive aluminum industry worldwide, triggering a wave of closures and cutbacks. Years of expansion in China, where smelters are subsidized and typically incur lower costs, have intensified global competition.Rio has previously said that electricity accounts for more than 40% of Tomago’s operating costs. Prime Minister Anthony Albanese pledged financial support during a visit to the plant in December, months after Rio warned that soaring energy costs could force it to close when an existing power-supply contract expires later this decade.As part of any arrangement, the smelter’s owners would spend at least A$1 billion ($706 million) on maintenance and upgrades, the government said in a statement at the time. Separately, in March, Rio secured A$2 billion in combined federal and state government funding for another Australian smelter, Boyne, in the state of Queensland.The company is not alone in securing Australian state funding: last year, the federal and respective state governments provided packages of support to Glencore Plc for its Mount Isa copper smelter and associated refinery, while Trafigura Group subsidiary Nyrstar Australia received funding for its Port Pirie lead smelter and Hobart zinc works.The Tomago bailout was first reported by the Australian Financial Review.—With assistance from James Mayger.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.