One of the major shareholders in the Tomago aluminium smelter, situated north of Sydney, has decided to write down the value of its investment in the facility to zero. This move raises serious concerns about the smelter’s long-term viability as the largest single consumer of electricity in Australia’s national grid. The future of the smelter is looking increasingly challenging, especially with rising energy costs and ongoing market uncertainties.
Hydro’s share in the Tomago aluminium smelter
Norsk Hydro, which employs more than 1000 people, with the majority ownership held by Rio Tinto, have informed its investors about its challenging situation in finding renewable power which is affordable, indicating uncertainty in the near future concerning the plant.
The firm owns a 12.4 per cent share in the Tomago aluminium smelter and is now the third-largest shareholder after Rio Tinto and CSR. Hydro made this move amid a national conversation about government support for struggling industrial sectors. This situation is drawing more attention to the use of taxpayer money to help energy-intensive companies that are grappling with increasing operational and financial challenges throughout Australia.