The owner of Australia’s biggest aluminium smelter has begun consulting its 1000-plus workers over the plant’s future, as negotiations with state and federal ministers over a potential rescue package are yet to land on a solution to keep it open.

Tomago Aluminium, which is majority-owned by mining giant Rio Tinto, is approaching a crippling blowout in energy costs at its 40-year-old smelter in NSW when its existing electricity contract with AGL expires in 2028.

On Tuesday, the company said it had reached the “difficult point” of beginning consultations with its large workforce and trade union representatives about the possibility of the site’s closure.

“Despite extensive engagement and market approaches, Tomago is yet to identify a pathway that supports commercially sustainable operatio

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