Rio Tinto has struck a landmark partnership with the Queensland and federal governments to secure a long-term future for the Boyne aluminium smelter at Gladstone.
Under the deal, the state and federal governments will invest a combined AU$2 billion over 10 years to 2040.
The partnership supports a long-term future for aluminium smelting in Queensland, building on power purchase agreements (PPA) signed by Rio Tinto to underwrite AU$7.5 billion in new renewable energy and storage in the state.
The partnership also supports the transition to long-term competitive power for the smelter and manufacturing jobs in Queensland for the longer term.
The agreement ensures that Boyne Smelters Ltd., the owner of the smelter in which Rio Tinto has a majority stake, will continue aluminium production beyond the completion of its current power contract in 2029, through to at least 2040.
Boyne Smelters has been operating since 1982 and is Australia’s second largest aluminium smelter.
Rio Tinto Aluminium and Lithium CEO 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.”
Federal Minister for Industry and Innovation Tim Ayres said the agreement with Rio Tinto is a significant decision to ensure that aluminium production continues domestically.
“This is a good deal for everybody in Australia. It means we protect and defend and extend industrial capability in this end-to-end aluminium supply chain,” Ayres said.
“From bauxite in Cape York through to alumina and aluminium production here finding its way all the way through to construction sites and retail outlets in our big cities.
“This is a good decision for Australian economic resilience at a time in our history when we cannot take our future for granted.”
Rio Tinto has also agreed to offtake 40 per cent of Lightsource bp’s Lower Wonga solar and battery hybrid project near Gympie, equivalent to 112MWac of solar capacity and approximately three hours duration of associated battery storage.
In Queensland, Rio Tinto has contracted more than 2.8GW of new renewable energy and more than 600MW storage capacity from five projects since January 2024.
