Tomago deal a watershed victory for manufacturing jobs and Australian sovereignty

The Australian Workers’ Union has hailed the deal to save the Tomago aluminium smelter as a monumental victory for Australia’s manufacturing, energy transition, and sovereign capability.

The joint federal and state agreement – underwritten by long-term power purchase arrangements with Snowy Hydro – ends months of uncertainty for workers, suppliers, and the Hunter.

Tomago directly employs more than 1,000 workers in highly skilled, secure jobs and supports up to 5,000 additional jobs across the regional supply chain.

AWU National Secretary Paul Farrow praised both governments for stepping up with a practical solution.

“This is a watershed moment for Australian manufacturing,” Mr Farrow said.

“Tomago was the ultimate test case for whether Australia is serious about remaining a nation that actually makes things.

“Allowing Tomago to fail would have consigned Australia to being a country that simply digs up raw bauxite, ships it overseas for processing, and buys back finished aluminium at a premium. That’s a recipe for a poor, insecure nation.

“Aluminium is one of the fundamental building blocks of modern society. It’s vital for construction, transport, defence, and renewable energy technology. If you lose the capacity to process raw materials into usable metal domestically, you lose those skills, supply chains, and sovereign capabilities forever.

“Tomago’s massive, 24/7 power demand effectively underwrites the commercial business case for massive new investments in wind, solar, and battery storage across the Hunter. Without a major baseload buyer like Tomago, the demand signal that justifies billions of dollars in private clean energy investment vanishes.

“This agreement sets Tomago on a long-term path to becoming a global hub for green aluminium. Australia can cut emissions while expanding its industrial strength – these things don’t have to be in tension.”

AWU NSW Branch Secretary Tony Callinan said the announcement brings immense relief to thousands of workers and families across the Hunter Valley.

“For our members at Tomago and across the Hunter, today’s news is the best possible outcome,” Mr Callinan said.

“You don’t have to go back far to a time when securing a long-term deal like this looked a million miles off. But our members and this union persisted and today’s result proves what can be achieved when governments, industry, and workers sit down together to solve complex national challenges in good faith.

“Tomago is the industrial heartbeat of the Hunter. It supports apprenticeships, skilled trades, and generations of families. The uncertainty that has hung over Tomago for a very long time now has been oppressive on this community. I’m so relieved our members can now go to work with certainty and confidence, knowing their jobs and their community’s future are secure.

“We commend both federal and state Labor governments for standing up for blue-collar jobs and getting this deal done.”