Tomago Aluminium, the largest aluminum smelter in Australia, has started a consultation with its employees regarding the potential cessation of operations when its current electricity contract expires at the end of 2028.

The company said that despite efforts since 2022, it has failed to secure an economically viable energy solution for the future. With electricity comprising more than 40% of operating costs, market proposals for both coal and renewable power after 2028 show costs will increase significantly, making the smelter commercially unsustainable.

CEO and General Manager Jérôme Dozol confirmed that while no final decision has been reached, the company must contemplate closing the facility.

The consultation, running until November 21, allows employees and unions to provide feedback on this difficult future before a definitive choice is made.