Rio Tinto, along with the Queensland and Commonwealth governments, has committed to establishing a long-term plan for the Boyne aluminium smelter in Gladstone with an investment of A$2bn ($1.4bn) over the next decade.
This collaboration aims to maintain the smelter’s international cost-competitiveness beyond its existing power contract.
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The initiative is part of the federal government’s Future Made in Australia programme and aims to maintain the smelter’s competitiveness on a global level.
This pledge finalises an earlier agreement between Queensland and Rio Tinto supporting a transition to sustainable power solutions for the smelter and securing manufacturing jobs in central Queensland.
Rio Tinto has previously signed power purchase agreements to support the development of A$7.5bn worth of renewable energy and storage projects in Queensland.
The new deal will ensure that Boyne Smelters (BSL), the smelter owner, continues its production activities beyond 2029 when its current power contract concludes, extending operations to at least 2040.
BSL, operating since 1982 on Boyne Island, is Australia’s second-largest aluminium smelter.
It engages in manufacturing carbon anodes, aluminium production and casting molten metal into products ready for shipment.
The smelter is connected by conveyor belt to the Queensland Alumina refinery for alumina supplies.
Ownership of BSL is divided between Rio Tinto (73.5%), YKK Aluminium (9.5%), UACJ (9.29%) and Southern Cross Aluminium (7.71%).
Rio Tinto Aluminium & Lithium chief executive Jérôme Pécresse said: “This transformative partnership with the Queensland and Australian governments will ensure Boyne Smelter remains internationally competitive, strengthens the Australian aluminium sector for the future and supports the transformation and decarbonisation of the Queensland 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.”
Earlier this month, Rio Tinto obtained a financing package totalling $1.17bn (£872.27m) to advance the Rincon lithium project in Salta Province, Argentina.
