Sustainable smelting at Tomago Aluminium

100% renewable energy by 2035

The aluminium industry is at a crossroads — although a key enabler of technology critical to the energy transition, the subsector itself is also energy hungry.

The smelting process, where alumina is turned into aluminium metal, is a significant source of Scope 2 or indirect emissions, driven by electricity generation.

As Australia’s largest aluminium smelter, Tomago Aluminium operates round-the-clock to produce 590,000tpa of aluminium, using around 10% of the NSW power supply each year.

The Australian Mining Review speaks with Tomago Aluminium chief executive and general manager Jerome Dozol about the company’s plans to be 100% powered by renewable energy by 2035 and, in turn, cut its total emissions by 85%.

In the Hunter Region of NSW, Tomago Aluminium stands as one of Australia’s largest aluminium smelters, contributing significantly to both local and national economies over the past 40 years – and still going strong.

The company began after feasibility studies in 1978 by Aluminium Pechiney Australia Pty Ltd, with its location chosen due to access to affordable electricity and proximity to the port.

Officially launched in December 1979, the $600m project provided a significant economic boost, with 83% of the investment spent locally.

Within five years, by 1984, the smelter became fully operational, and today it remains Australia’s largest aluminium smelter, contributing greatly to both the local and national economy.

Tomago Aluminium was designed to be a cornerstone of Australia’s aluminium industry, responding to growing global demand for lightweight, durable metals. The company’s chief executive and general manager Jerome Dozol explains that Tomago Aluminium’s initial vision was to become one of the world’s largest and most efficient smelters.

“Since starting operations in 1983, the company has grown to achieve that goal, now producing 590,000t of aluminium annually and contributing $2.2b to the national economy,” he says.

“Over the years, despite market challenges, Tomago has expanded and remained competitive, supporting more than 1,000 employees and a few hundred contractors.

“As the world shifts toward a low-carbon economy, Tomago’s vision has evolved to focus on sustainability.

“Recognising aluminium’s critical role in sustainable industries, the company is committed to reducing its environmental impact.

“Tomago aims to be 100% powered by renewable energy by 2035, cutting total emissions by 85%, and continuing its leadership in sustainable aluminium production.”

Milestones of Tomago

Tomago Aluminium has gone through a significant number of key milestones that have helped shape the company into what it is today, reflecting its growth, technological advancements and contributions to sustainability.

The commissioning of the first potline on September 1 in 1983, and the first ladle of molten aluminium received by the Casthouse on September 14, 1983 marked the start of production, establishing Tomago Aluminium as a major player in the industry.

“In 1991, the construction of a third potline, a $600m project, was approved, marking the largest industrial project in NSW at the time,” Mr Dozol said.

“This expansion solidified Tomago’s reputation as a global leader in technical performance and environmental controls.”

Yet another significant milestone has been Tomago Aluminium’s innovative approach to power control in smelting operations, which Mr Dozol says supports both the NSW energy grid and the company’s operational resilience.

“This focus on innovation, combined with investments in advanced technologies and sustainability efforts, continues to strengthen Tomago Aluminium’s position as a leader in the aluminium industry,” he said.

Growth and direction

Tomago Aluminium has faced several pivotal challenges that have influenced its growth and strategic direction, including managing fluctuations in the global aluminium market which demanded adaptability and a competitive edge.

A major technical achievement came with the successful increase in amperage across the smelter, enabling higher production capacity and efficiency without requiring new infrastructure.

Tomago Aluminium’s focus on continuous improvement has been essential in navigating industry challenges and maintaining the company’s resilience.

Mr Dozol says that since its establishment, Tomago Aluminium has seen significant growth in production capacity, workforce and market presence.

“During construction, the project generated 1,500 direct jobs and 600 in related sectors, with a broader impact creating up to 5,400 permanent jobs across Australia,” he said.

“The Hunter Valley saw a major social shift with 1,500 new homes built for incoming workers.

“In October 1983, just one month after operations began, the first 1,500t of aluminium were shipped to Japan, marking Tomago’s global market entry.

“Potline 2 became operational in 1984, and by 1988, the smelter had produced 1mt of aluminium, doubling to 2mt by 1992.

“The expansion of Potline 3 in 1991 cemented Tomago’s position as a world leader in aluminium production.”

Staying competitive

As the aluminium industry continues to evolve, driven by rapid globalisation and technological advancements, companies like Tomago Aluminium must adapt to remain competitive in the constantly changing landscape.

According to Mr Dozol, Tomago Aluminium plans to stay competitive in the global market by focusing on energy transition and operational efficiency.

“Getting renewable power at a competitive price is key to maintaining competitiveness,” he said.

“Tomago is transitioning from coal to renewable energy, with a goal to be 100% powered by renewables by 2035.

“This will reduce emissions while being resilient through the aluminium cycle to position the smelter for long-term success.”

Tomago Aluminium understands the challenges of operating within this fast-paced economy and is focused on leveraging its 40-year experience and knowledge to remain at the forefront of the industry.

Innovation and future trends

As one of Australia’s leading producers, Tomago Aluminium recognises that the future of the industry is shaped by trends and that the company needs to prepare for them – the biggest trend of them all being the shift toward decarbonisation, with more than 85% of emissions coming from energy use.

Tomago Aluminium is preparing by working towards a 100% renewable energy supply by 2035 to ensure the company reduces its carbon footprint and to stay competitive as sustainability becomes a global priority.

Tomago Aluminium also continues to invest in advanced smelting technologies and productivity improvements, aiming to enhance operational efficiency, reduce energy consumption and increase production capacity.

By staying at the top of its game, Tomago Aluminium can meet future demands and maintain its position as a leader in the global aluminium market.

AMR: What lesson from Tomago’s history are most valuable to you as a CEO?

JD: As CEO, the most valuable lessons from Tomago Aluminium’s history include the importance of resilience, adaptability and a commitment to continuous improvement. The company’s ability to navigate challenges and embrace change has been a cornerstone of its success, teaching that flexibility is crucial in an ever-evolving industry.

Additionally, the emphasis on investing in our people has reinforced the idea that a skilled and motivated workforce is key to driving innovation and operational excellence…Tomago’s longstanding commitment to sustainability highlights the importance of aligning our business strategies with environmental responsibility.”

AMR: What is your take on the current Australian and global economy?

JD: The current Australian and global economy is facing significant challenges due to rapid changes in decarbonisation efforts, emerging technologies, and geopolitical tensions. This environment makes it difficult to sustain industry, as companies must navigate these complexities while maintaining competitiveness. The provision of clean and affordable energy is not only a competitive advantage today but will also shape the future landscape of the global economy. Embracing these changes will be essential for businesses to thrive in the coming years.

AMR: What policy do you think needs changing?

JD: Policies related to accessing clean and affordable energy need to be changed to enhance competitiveness. Current energy policies must prioritise renewable sources and infrastructure investment to support industries transitioning to sustainable practices. Effective policy changes today will shape Australia’s competitiveness over the next 10 to 20 years. Conversely, policies that encourage innovation and investment in technology are working well and will help drive the industry forward in this evolving landscape.

AMR: Tell us a bit about you. What drew you to mining?

JD: I was drawn to working at Tomago Aluminium due to its reputation as one of the world’s leading aluminium smelters. Being part of an organisation that shapes the future through renewable energy and technological advancements is incredibly fulfilling for me.

Outside of work, I enjoy outdoor sports and playing music with my family.