The Australian federal government and the state of New South Wales will work with Tomago Aluminium to keep the country's largest smelter in operation after the electricity contract expires in 2028. Rio Tinto owns just over 52 percent of the business, which is a joint venture with Gove Aluminium Finance and Norway's Norsk Hydro.

Tomago has warned of closure if no sustainable energy solution is found, something the company has been seeking since 2022. Prime Minister Anthony Albanese says the parties are now working on a long-term agreement based on renewable energy, reports the Wall Street Journal.

"This is so important to our national interest," Albanese said. "It is important that we as a nation continue to manufacture things here."

Tomago's smelter has been in operation since 1983 and has an annual capacity of up to 590,000 tons of aluminum, which is almost 40 percent of Australia's total supply.