New NSW Aluminium Plant to Create 300 Jobs

7 Feb 11

The Tomago Aluminium smelter near Newcastle has signed a long term supply deal with a Bahrain-based firm to build a new manufacturing plant, creating around 300 new jobs.

The announcement follows the deal's cancellation in September due to an unresolved power supply dispute between Tomago Aluminum and its base-load power supplier Macquarie Generation. During the power supply dispute, Tomago warned delays in getting a new power deal would jeopardise the 30 million dollar Midal Cables plant, which will be built alongside the smelter. Midal will use molten aluminium from Tomago to make aluminium alloy rods, wires and conductors.

It is expected to be operating by the end of 2012 and when it reaches full production, will eventually produce 50,000 tonnes of aluminium rods and conductors a year for a range of industries including power transmission and distribution.

Midal will use 5 per cent of Tomago Aluminium's hot metal in its first year of production, increasing to 10 per cent thereafter.

Tomago CEO Brian Cooper says it is a great opportunity to add value to the region's aluminum industry.

"Very much so, obviously taking the heat from the metal from Tomago, making products in a sustainable way," he said.

"Generating high value products to support construction within Australia, and also providing materials we can export as well through Sydney and Newcastle ports.

"Hopefully they'll be able to start construction by the end of this year and would certainly be taking metal from us by the end of 2012.

"As they get into the construction phase they would be looking to recruit by the end of this year, targeting people who know what the manufacturing industry is all about and can support that in a safe and sustainable manner," he said.