Rio Tinto has reached an agreement with the Queensland and Commonwealth governments for a combined A$2 billion investment to support the Boyne aluminium smelter in Gladstone through 2040. The package, part of the Federal Government's Future Made in Australia initiative, complements Rio's renewable power purchase agreements totalling over 2.8GW.
Rio Tinto, together with the Queensland and Commonwealth governments, has finalised a partnership to secure the long-term future of the Boyne aluminium smelter in Gladstone, according to an official announcement. The governments will invest a combined A$2 billion over 10 years to 2040, supporting the smelter's transition to long-term competitive power and preserving manufacturing jobs in Central Queensland.
Rio Tinto is a global mining and metals company with integrated bauxite mining, alumina refining, and aluminium smelting operations in Queensland. Boyne Smelters Limited, majority-owned by Rio Tinto, operates the smelter facility. The partnership ensures production continues beyond the expiry of its current power contract in 2029 through at least 2040.
The agreement builds on power purchase agreements Rio Tinto has signed in recent years, underwriting A$7.5 billion in renewable energy and storage projects in Queensland. The company has also agreed to offtake 40% of Lightsource bp's Lower Wonga solar and battery project near Gympie, adding 112 MWac of solar capacity with battery storage. Total contracted renewable power now exceeds 2.8 GW.
This development matters for Australia's aluminium and energy sectors, representing a pathway for emissions-intensive industries to transition to renewable energy while maintaining international competitiveness. The Boyne smelter is positioned to become among the world's first aluminium smelters underpinned by solar and wind power. For the mining and manufacturing industries, the partnership preserves a fully integrated aluminium value chain in Queensland at a time when global aluminium demand is growing with the energy transition.
Stakeholders including equipment suppliers, renewable developers, and regional communities stand to benefit from sustained industrial activity and decarbonisation investments.
About GlobeNewsInfo
GlobeNewsInfo.com is a business news platform providing latest updates on global business developments, projects, and contract opportunities across diverse sectors and regions. The platform is designed to serve as a trusted source of information for companies, investors, and professionals worldwide.