The federal government is considering a dramatic intervention in the electricity market to save the struggling Tomago aluminium smelter while accelerating the lagging rollout of renewables.

Tomago's owner, Rio Tinto, has warned it could be forced to close the Hunter Region smelter when its current coal-fired power contract with AGL expires at the end of 2028 because of rising electricity costs.

"The cost of both coal-fired and renewable energy options from January 2029 would increase significantly, fundamentally changing operating economics and leaving the smelter unviable," the company said in October .

Faced with the prospect of 1,000 workers losing their jobs, and Australia losing its largest aluminium smelter, Labor has promised to throw everything at finding a fix and, in recent

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