Australia's biggest aluminium smelter is being reminded of its 40-year responsibility to its workers as it foreshadows a closure, citing rising electricity costs.

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Federal government figures are desperate to keep the Tomago Aluminium smelter running and have engaged with both it and state politicians over a bailout reportedly worth more than $1 billion.

Tomago, which is majority-owned by Rio Tinto, says high energy costs have forced the company to consider ending operations when its electricity supply contracts expire in 2028.

Energy Minister Chris Bowen admitted frustration the parties had not yet reached an arrangement, but said the govern

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