00:02It is the largest aluminium smelter in Australia.
00:05It employs 1,000 workers directly, but more than 5,000 indirectly across the Hunter region
00:11here in New South Wales.
00:13But the Prime Minister Anthony Albanese and the New South Wales Premier Chris Minns also
00:18really talked about the flow-on impacts that this smelter has.
00:22They spoke about protecting sovereign capability on producing aluminium to ensure that industry
00:29into the future.
00:30As you mentioned, the smelter's owner, Rio Tinto, did threaten to close this smelter due to rising
00:37energy costs in 2029.
00:39In late 2028, the smelter's current power deal lapses, and they warned that it was too expensive
00:45for them to keep this smelter running.
00:48So this bailout deal that comes into effect then will allow the smelter to continue operating
00:53for longer, for about a 10-year minimum deal.
00:57Here's a little bit more of what the Prime Minister had to say this morning.
01:00This announcement today secures the future of this facility.
01:05An example as well of governments working with the private sector to make sure that we're
01:13not at the end of supply chains, making sure that there is a future made right here in
01:21Australia and a future made right here in the Hunter.
01:25Aluminium is an essential product and will be even more important into the future, which
01:32is why it's absolutely critical that today's agreement make sure that this facility that
01:39has been so important for the Hunter, a thousand direct jobs, but 5,000 indirect jobs in this
01:47region on top of that.
01:48Now Bridget, there'll be plenty of analysis on the numbers and whether or not they stack
01:53up.
01:53Exactly how much is it costing taxpayers?
01:56It is going to be a $2.5 billion bill split evenly between the Commonwealth and the New
02:03South Wales Government.
02:04Now in defending that figure going toward a private company, Anthony Albanese and Chris
02:10Minns said that it was really in the best interests of Australia and New South Wales taxpayers to
02:16shore up this facility and to ensure that it remains operational.
02:20And that was their reasoning for saying and contributing $2.5 billion.
02:25It is worth mentioning as part of this deal Rio Tinto itself will have to contribute $1.1 billion
02:31additionally to go into plans to reduce its carbon input and reduce its impact on the New
02:38South Wales grid.
02:39Tomago as it stands is the largest power user in New South Wales and there will be expectations
02:44for them to contribute to renewable energy.
02:47Now in the negotiations for this deal there was a bit of tit for tat between the Federal
02:52and New South Wales governments on cost sharing.
02:55They have agreed to split it down the middle.
02:57Here is what New South Wales Premier Chris Minns had to say.
03:00We have struck an agreement with the Commonwealth Government around 50-50.
03:03We recognise this is based in New South Wales.
03:06It is hugely important for our economy and the Federal Government has come to the table
03:11with a big, big investment which is important both for Tomago and for the Hunter.
03:16What we were able to do over the last three or four months and I am very grateful for the
03:20Prime Minister's intervention is solve a range of federal state financing issues that have
03:25been on the table for a long time.
03:26But the PM stepped in and he solved it and we are very grateful.
03:31And Bridget what has the local reaction been?
03:35There has been a lot of relief here this morning.
03:38There was a large contingent of workers that were here for the announcement and for the Prime
03:42Minister's visit today.
03:44Of course the job security for the people that work here.
03:47This is one of the largest employers in the Greater Hunter.
03:50Very important for the industrial landscape in this region.
03:53So a lot of relief in terms of being able to pay the mortgage.
03:57Younger workers who are at the start of their career now have some more certainty for years
04:01to come and older workers that we have spoken to as well saying that they now have a plan
04:05that will take them up to retirement.
04:07So a big sense of relief for the workers here on the ground.
04:10However, there has been some remaining questions on the size of the contribution from the government
04:17toward a private company in Rio Tinto.
04:19.
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