Queensland’s aluminium smelter saved: Rio Tinto and Government’s game-changing deal revealed

In a landmark agreement, the Queensland Government and global mining giant Rio Tinto have forged a strategic partnership to ensure the long-term viability of Boyne Smelters Limited (BSL), Australia’s second-largest aluminium smelter. This move highlights a significant step in advancing Queensland’s ambitions to become a leading hub for renewable energy, while safeguarding thousands of jobs and bolstering the local economy.

Partnership Ensures Future of Boyne Smelters Limited

The agreement represents a crucial initiative to maintain BSL’s operational stability, with Rio Tinto committing to significant investments aimed at transitioning the smelter to renewable energy sources. This partnership aligns with Queensland’s broader vision of establishing Gladstone as a centre for clean energy, complementing the Australian Government’s Future Made in Australia Plan, which focuses on decarbonising the aluminium industry.

Economic Impact and Operational Commitments

The Queensland Government’s “Energy and Jobs Plan” will provide critical financial support to BSL, ensuring its continued operational capacity from 2029 onwards. This plan is pivotal for maintaining BSL’s role as a major economic driver in central Queensland, where it supports over 1,000 jobs and contributes significantly to the local and national economy. The smelter, which has an annual production capacity exceeding 500,000 tonnes, will remain integral to Australia’s aluminium export industry.

Rio Tinto is also set to enhance its coastal shipping operations by adding a fifth domestically crewed vessel to its fleet. This vessel will facilitate the transport of bauxite from Rio Tinto’s Gove and Weipa mines to Gladstone, further supporting the smelter’s operations.

Investments in Renewable Energy and Infrastructure

In addition to its operational commitments, Rio Tinto has pledged to invest in Queensland’s renewable energy infrastructure. This includes support for major solar and wind projects across the state, contributing to Gladstone’s transformation into a renewable energy hub. The investment will enable BSL to develop advanced capabilities for managing power consumption during peak demand periods, thus strengthening the regional electricity grid.

This agreement is expected to play a significant role in Queensland’s broader energy transition strategy. Gladstone, already known for its heavy industrial base, is poised to become a pivotal player in Australia’s shift towards sustainable energy solutions. The Queensland Government’s strategy to integrate renewable energy with heavy industry aligns with global trends towards greener manufacturing processes.

Pending Approvals and Future Prospects

The agreement is subject to the completion of Rio Tinto’s energy contracting activities, relevant joint venture approvals, and the establishment of an Australian Government pathway for a decarbonised aluminium industry. Rio Tinto’s Chief Executive Australia, Kellie Parker, underscored the significance of this partnership, describing it as one of the most substantial in the company’s history. Parker emphasised the agreement’s role in supporting employment, reducing Australia’s carbon footprint, and reinforcing Australia’s position as a leading global supplier of aluminium.

Parker also noted the need for continued dialogue with the Federal Government to secure supportive industry policies, ensuring the sustainability of Australia’s green aluminium sector.

Boyne Smelters Limited, established in 1982, operates as Australia’s second-largest aluminium smelter. Located at Boyne Island in central Queensland, BSL engages in the production of aluminium through its reduction lines and the casting of molten metal into aluminium products ready for shipment. The smelter is linked to the Queensland Alumina Limited refinery via a conveyor belt, ensuring a steady supply of alumina.

Rio Tinto’s aluminium operations in Queensland are a major economic driver, employing over 4,500 people and supporting thousands more across Australia. The company’s operations in Gladstone account for more than 3,000 jobs, including 1,000 at BSL. Additionally, Rio Tinto’s bauxite operations in Weipa employ over 1,300 people, contributing to the supply chain for Gladstone’s aluminium production.