The federal and state governments will split $2.5 billion in subsidised power to keep Tomago Aluminium operating for at least another decade, with Rio Tinto investing at least $1.1 billion including $100 million in decarbonisation, Prime Minister Anthony Albanese and NSW Premier Chris Minns announced on Thursday. The deal saves about 1,000 jobs at Australia's largest aluminium smelter, which faced closure at the end of 2028 due to rising coal-fired power costs and lack of reliable renewable energy infrastructure.

The Opposition has called the bailout evidence of the government's renewable energy policy failure, while the Greens say Rio Tinto — which reported $10 billion in profit after tax last year — should not receive subsidies without the government taking an equity stake. Once complete, the arrangement is expected to deliver an extra 3 gigawatts of renewable power across NSW, Ben Clifford reports for ABC business (AU).