Queensland and Rio Tinto partner to support Gladstone smelters

The Queensland Government and Rio Tinto have signed an agreement to support investment in renewable energy projects around the Boyne aluminium smelter in Gladstone.

Rio Tinto says the agreement represents an important step towards securing a long-term future for Australia’s second-largest aluminium smelter and thousands of jobs in central Queensland supported by the operations.

The partnership supports Queensland’s aim to establish Gladstone as a renewable energy hub and strengthens the electricity grid as Australia transitions to a cleaner energy future. The cooperation between Rio Tinto and the Queensland Government will complement ongoing policy development by the Australian Government to support a decarbonised aluminium industry as part of its Future Made in Australia Plan.

Through its Energy and Jobs Plan, the Queensland Government will support Boyne Smelter Limited’s (BSL’s) financial viability from 2029 as the smelter transitions to renewable energy. In return, Rio Tinto will invest to maintain BSL’s full operational capacity, supporting Australia’s ambition to remain a major exporter of aluminium.

This ensures BSL, which has an annual production capacity of more than 500,000 tonnes of aluminium and directly employs more than 1000 people, will continue to be a significant contributor to the local, Queensland and national economy. Rio Tinto will also work to expand its coastal shipping capacity, to add a fifth domestically crewed vessel to its existing fleet of four. These ships transport bauxite from the company’s Gove and Weipa mines to operations in Gladstone.

Rio Tinto has also committed to additional sustainable energy investments in Queensland, building on its existing commitments to solar and wind projects across the state.

The agreement remains contingent on 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.

“This agreement with the Queensland Government represents one of the most significant partnerships in our long history of operations in the state,” said Rio Tinto Chief Executive Australia Kellie Parker. “It paves the way for a competitive, green-energy powered BSL, supporting employment and lowering Australia’s carbon footprint. The partnership will support Australia’s status as a leading, global supplier of aluminium at a time when the world needs the metal for the green energy transition.”

Image credit: iStock.com/Tammy Walker