Aluminium smelter bailout to cost taxpayers $2.5 billion over 10 years
Australia's federal government and the state of New South Wales will split the cost of an aluminium smelter bailout down the middle, under a deal in which mining giant Rio Tinto will contribute at least $1.1 billion. The package aims to cut the smelter's power usage and steer it toward renewable energy.
Australia's federal government will split the cost of a bailout package for an aluminium smelter equally with the state government of New South Wales, under a deal expected to cost taxpayers roughly $2.5 billion over the next decade. The arrangement is designed to keep the plant operating rather than face closure.
Under the package, mining giant Rio Tinto will contribute at least $1.1 billion of its own funds toward reducing the smelter's power consumption and accelerating its shift toward renewable energy sources. Concerns over the thousands of jobs the plant supports in the surrounding region were central to the government's decision to intervene.
Critics have questioned whether directing public funds toward sustaining a private company's operations is the right priority, while government officials argue that protecting regional employment and supporting the broader energy transition justify the cost. Further details of the arrangement are expected to be debated in parliament in the coming weeks.
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