$2 billion investment to secure Queensland's aluminium

The federal and Queensland governments, together with Rio Tinto, have announced they will invest $2 billion to transform Queensland’s energy grid and secure the future of aluminium smelting in Central Queensland. The say this will unlock almost $7.5 billion in new investment in Queensland, with Rio Tinto underwriting significant investment in energy and transmission assets.

Under the agreement:

• the Commonwealth and Queensland Government will each invest $1 billion over 10 years to support Australia’s second-largest aluminium smelter to stay open and protect jobs in Gladstone and Weipa.
• Rio Tinto will underwrite close to $7.5 billion of investment in new energy generation and transmission in Central Queensland, to secure the long-term future of the Boyne aluminium smelter.
   

Aluminium is critical to Australia’s economy, with the Boyne aluminium smelter supporting 1000 jobs at the site and a further 2000 indirect jobs in Gladstone.

Australia is unique in that it has the entire aluminium supply chain, from bauxite mining to finished products, onshore.

Minister for Industry and Innovation and Minister for Science Tim Ayres said this was a good day for Queensland jobs and a good day for Australian industry.

“Today’s announcement is exactly what Future Made in Australia is all about — governments stepping up to partner with industry and unlock the enormous industrial potential of our regions,” he said. “With a considerable public investment, we are catalysing a fivefold private investment that will build out the renewable energy grid and keep thousands of good regional jobs in Central Queensland.”

“Our partnership with the Australian Government and Rio Tinto will secure the long-term future of the Boyne Smelter and the thousands of jobs it supports across Queensland,” said Minister for Natural Resources and Mines, Minister for Manufacturing and Minister for Regional and Rural Development Dale Last. “At a time when supply chain disruptions are being felt across the globe, this investment is needed now more than ever to safeguard Queensland’s sovereign manufacturing capabilities, and to build national resilience and international competitiveness.”

Image credit: iStock.com/ncox1585