Tomago Aluminium has started an employee consultation on the potential future of its operations after it failed to identify a pathway to support commercially sustainable operations beyond 2028.
The company is considering ceasing operations at the end of its current electricity supply contract.
The consultation process, which runs until November 21, will offer employees and union representatives the chance to share feedback.
Tomago Aluminium has failed to find a competitively priced energy solution.
Electricity accounts for more than 40 per cent of the company’s current operating costs, and based on market proposals, the cost of both coal-fired and renewable energy solutions from January 2029 would increase significantly.
A decision has not been made on the future of the smelter.
Tomago Aluminium CEO Jérôme Dozol said: “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.”
Tomago Aluminium is Australia’s largest aluminium smelter, producing up to 590,000 tonnes per year, almost 40 per cent of country’s annual aluminium production.
