CSR says new energy deal crucial for Tomago smelter
The giant Tomago aluminium smelter in which CSR owns a 25 per cent stake is seeking a cheaper power deal from 2029 as crunch time looms for the biggest user of electricity in NSW.
Tomago, which is 51.5 per cent owned by Rio Tinto, is the biggest aluminium smelter in Australia. Rio boss Jakob Stausholm in August declared a low carbon solution for the miner’s wide stable of aluminium assets must be found before 2030, by which time the present power deal at Tomago will have expired.
CSR chief executive Julie Coates said the outcome of the new power deal would be crucial. Tomago has an energy contract with AGL running until 2028 and is seeking expressions of interest from power providers.
CSR chief executive Julie Coates pictured in Sydney this week. Dominic Lorrimer
“That’s an important milestone in terms of the future of the Tomago business,” the CSR boss said.
CSR’s aluminium division tumbled to a $24 million loss in the six months ended September 30 and is forecast to make a loss of between $15 million to $30 million for the full year. Higher energy prices and coal costs were up a combined $26 million in the aluminium unit, which was an overall drag on CSR’s core building products division that had a record half.
Ms Coates said there was a solid pipeline of detached housing construction that runs until June 2024, and any further lift in interest rates by the Reserve Bank next week would be absorbed without hurting demand.
The company behind Gyprock plasterboard, PGH bricks and pavers, and Monier roof tiles on Thursday reported a 12 per cent drop in net profit to $91.5 million for the six months ended September 30. Revenue was up 5 per cent to $1.37 billion. The building products business delivered a record result for
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