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The Australian Financial review is reporting this afternoon that
"Newcastle's Tomago smelter braces for possible 'catastrophe'".

Originally Posted by AFR Fri 10 2017

The head of Newcastle's giant Tomago aluminium smelter said it could be hit by a Portland Aluminium-style "catastrophe" after being warned to brace for rolling power outages amid forecast shortages on Friday afternoon.

Energy minister Josh Frydenberg also asked the Australian Energy Regulator to investigate French company Engie for failing to respond to an urgent plea for more generation in South Australia on Wednesday as that state faced blackouts.

As NSW headed towards its record power demand in 36 degree heat, Matt Howell, chief executive, said Tomago Aluminium had been notified that it will have to curtail its huge electricity demand from 3.45pm if the state's expected shortfall in supply isn't solved.

Mr Howell said up to 80 of the plant's 1000 staff would have to work through the outages in blistering heat to minimise the chances of the 590,000 tonne a year smelter's three potlines freezing - as one of Portland Aluminium's potlines did when a blackout hit western Victoria in December.

Wholesale electricity prices in NSW are forecast to hit the $14,000/ per megawatt hour National Electricity Market maximum in NSW between 2.30pm and 7pm. The Tomago smelter draws 12 per cent of NSW's power.

"We will take each of the potlines off for up to one and a quarter hours each one after the other. That can be an extremely serious situation. There is no guarantee we can bring them back immediately," Mr Howell said.

"We have seen what happened at Portland. If it doesn't come back on it's a catastrophe." Tomago Aluminium is a joint venture of Rio Tinto, CSR, Alcan Australia and Hydro Aluminium.

Portland Aluminum lost power for about 5 hours in the early hours of December 1 and was unable to revive one of its potlines afterwards.

The aluminium in the potline solidified, necessitating a huge clean up job and a $240 million bailout funded by the Victorian and federal governments to persuade Alcoa of Australia to keep the facility open in the face of soaring electricity prices and a weak aluminum market.

Queensland's Boyne aluminium smelter has been forced to slash jobs and production by soaring electricity prices, and more big plant closures could be on the cards.

The crisis comes after South Australia on Wednesday suffered its third blackout or power outage episode in five months, which sparked another bout of finger pointing in national politics.

Story here -

http://www.afr.com/news/newcastles-t...0170210-gua1l4