Rio Tinto (ASX:RIO), together with the Queensland Government and the Commonwealth Government, has struck a partnership deal securing the long-term future of the Boyne aluminium smelter at Gladstone, ensuring that it remains cost-competitive on an international scale beyond its current contract.
The agreement also secures the long-term future of aluminium smelting in Queensland, building up on power purchase agreements signed by Rio in previous years that underwrite $7.5 billion in new renewable energy and storage in the state.
This new agreement will see a combined $2 billion investment over 10 years. This adds on to the previously announced partnership between the Queensland Government and Rio and is part of the Australian Government’s Future Made in Australia initiative.
Boyne Smelters Limited, the owner of the smelter (of which Rio holds a majority stake) will continue aluminium production beyond the current contract, through to at least 2040.
Rio Tinto Aluminium & Lithium Chief Executive Jérôme Pécresse says that this agreement will ensure the international competitiveness of the Boyne Smelter, strengthening the future of Australia’s aluminium sector and the decarbonisation of Queensland’s energy system.
“As fossil fuels become increasingly expensive, this investment, combined with the power purchase agreements we have already signed, positions Boyne to be among the world’s first aluminium smelters underpinned by solar and wind power,” Pécresse says.
“It also ensures heavy manufacturing like aluminium smelting can continue in Gladstone for the long term, and preserves one of the few fully integrated aluminium value chains in the world – from bauxite mining to alumina refining to aluminium smelting all in Queensland – as demand for aluminium continues to grow with the energy transition.”
Rio Tinto has contracted more than 2.8 gigawatts of new renewable energy and more than 600 megawatts of storage capacity in Queensland from five projects since January 2024.
Write to Amy Rotman at Mining.com.au
Images: Rio Tinto
