More than 1,000 jobs have been secured at the Tomago Aluminium smelter, the largest in Australia, in a new agreement between the federal and NSW state governments and the plant owners.

The smelter, majority-owned by Rio Tinto, faced closure after 2028 due to surging energy costs upon the expiry of its coal power contract.

Prime Minister Anthony Albanese announced the deal, which will provide the facility with secure, clean energy and includes commitments for future investment. Albanese said that keeping the smelter open is important for national manufacturing and job security.

The full details will be finalized in the coming months.