The government can't hide its frustration with Rio Tinto, majority owner of the Tomago aluminium smelter, which is now being threatened with closure.

But at the same time, it's preparing to dip deeper into taxpayers' pockets to help the company out. Again.

Labor finds itself caught in a bind.

It thought it had done enough at the start of the year to secure the future of the plant.

After months of negotiation with the company, and with an eye to the looming election, the government in January unveiled its $2 billion green metals fund, a tax credit for aluminium and steel produced with renewable energy.

It was largely aimed at providing a lifeline to Tomago, located in the NSW Hunter Valley, where Labor was (at the time) nervous about its political prospects.

The taxpayer support to pr

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