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Thousands of Hunter workers have been handed long-awaited certainty after a landmark agreement secured the future of the Tomago aluminium smelter, ending months of concern over one of Australia’s most important industrial assets.

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The deal, backed by the federal and NSW governments and underpinned by long-term power purchase arrangements with Snowy Hydro, is being hailed as a major win for manufacturing, regional jobs and Australia’s industrial future.

Tomago directly employs more than 1,000 workers and supports a further 5,000 jobs across the Hunter’s broader supply chain, making it one of the region’s most significant employers.

The Australian Workers’ Union described the agreement as a “watershed moment” that preserves Australia’s ability to process raw materials domestically rather than exporting them offshore for value-added manufacturing.

AWU National Secretary Paul Farrow said the outcome was critical for Australia’s sovereign capability and industrial future.

“Allowing Tomago to fail would have left Australia exporting raw bauxite and importing finished aluminium at a premium,” Farrow said.

Beyond the jobs impact, the union argues Tomago plays a crucial role in Australia’s energy transition. As one of the country’s largest continuous electricity users, the smelter provides a major source of demand that can support future investment in wind, solar and battery projects across the Hunter region.

The agreement is also seen as a key step towards positioning Tomago as a future producer of lower-emissions or “green” aluminium, a market expected to grow as global industries seek cleaner supply chains.

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