Australia’s largest aluminium smelter has been forced to engage in consultation with employees over the future of their jobs as energy costs threaten operations.

Rio Tinto’s smelter Tomago, located in NSW’s Hunter Region, has faced intense energy challenges which has put 1000 jobs at risk.

The company is seeking billions of dollars from the NSW and federal governments to ensure its operation can continue.

However, it has called for a solution which secures a long-term future for the smelter rather than a short-term bailout.

Rio Tinto on Tuesday confirmed it started a consultation process with its employees on the potential future of Tomago.

It said it has not found a commercially sustainable energy solution that will enable the smelter to run after 2028 when its electricity contract

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