The Australian Manufacturing Workers’ Union (AMWU) welcomes today’s announcement by the Prime Minister on the future of the Tomago Aluminium Smelter, marking a major milestone after more than a year of work to secure the long-term viability of Australia’s largest aluminium smelter in the Asia-Pacific region.
Located north of Newcastle, the Tomago facility employs more than 1,000 workers and produces more than a third of Australia’s aluminium. Rio Tinto, the smelter’s majority owner, had cautioned that the facility could soon shut down because energy costs are set to double when its current electricity contract ends in 2028. Under a new agreement, the Commonwealth-owned Snowy Hydro project will supply Tomago with cheaper, more reliable power.
Tomago Aluminium’s continued operation is critical not only for local jobs but for the strength of Australia’s broader manufacturing sector. The AMWU has consistently championed the need to protect and grow Australia’s aluminium industry. Local production underpins high-skill, high-wage jobs, boosts the national economy, and strengthens Australia’s sovereign manufacturing capability.
Over the past year, the AMWU has played a pivotal role in safeguarding the jobs of our members at Tomago. Union representatives engaged directly with federal and state MPs, built strategic alliances, and pushed Rio Tinto to commit to a secure future for the facility.
Thousands of AMWU members—across mining, refining, logistics, smelting, and downstream aluminium manufacturing—depend on the stability of the Tomago smelter. For many families, these are irreplaceable jobs that provide financial security and support regional communities.
Today’s announcement also reinforces the urgent need to secure reliable, renewable, and affordable energy for Australian manufacturing. Transitioning to low-cost, zero-emissions electricity represents Australia’s natural competitive advantage, ensuring our industries can compete globally on energy price.
As the country’s largest single user of electricity, Tomago faces energy costs that make up more than 40 per cent of its operating expenses. Long-term access to clean, affordable power will be essential to sustaining and expanding this vital industry.
The AMWU remains committed to fighting for a strong and secure future for Australian manufacturing and the workers who drive it.
Quotes attributable to AMWU National Secretary Steve Murphy:
“Tomago will remain open. This is a victory for working class jobs. When workers, industry, and government stand shoulder-to-shoulder, we prove the 'Future Made in Australia' will be forged in the Hunter.”
“We fought, we organised, and we won job security for thousands of union families.”
“We have secured a long-term, sustainable energy solution that proves you can have heavy industry, good union jobs, and a cleaner future.”
“Rio told us bluntly: without the AMWU’s efforts, Tomago would have shut its doors. Without our intervention, Tomago’s future would have been in serious jeopardy.”
“This sets the standard for every essential Australian industry. Union jobs are secure jobs. Join a union to support the fight for the future of our industries.”