The future of Tomago Aluminium, one of the Hunter’s biggest employers, is uncertain as the company begins consulting staff about the long-term viability of its operations beyond 2028.
The smelter — located just north of Newcastle — confirmed it had yet to identify a pathway that would allow for commercially viable operations after its current energy contract expires.
Producing around 40 per cent of Australia’s total aluminium output, Tomago Aluminium is the nation’s largest single user of electricity, with energy costs accounting for more than 40 per cent of its total expenses.
The company said escalating prices for both coal-fired and renewable energy options would render the plant “unviable” beyond 2028.
Chief Executive Officer Matt Dozol said consultation did not mean a decision had been made but reflected the need to assess all options, including the possibility of ceasing operations at the end of the contract period.
Chief Financial Officer Andrew Newman said the company remained in discussions with the NSW and Federal Governments, as well as energy providers, to explore ways of keeping the smelter running.
“We’re very open to any options that may be on the table, and that would be in conjunction with both governments, with whom we’ve worked very collaboratively,” Mr Newman said.
The Tomago smelter employs more than 1,000 people, many of whom live across the Hunter region, making it a cornerstone of the local economy.
