Rio Tinto cuts 180 jobs at Queensland refinery

Rio Tinto (ASX: RIO) has announced it will be reducing production at its Yarwun alumina refinery in Gladstone, Queensland from October 2026.

Production will be scaled back by 40%, reducing annual alumina production by around 1.2mt.

The decision has been made to allow operations to continue until 2035 and, with Yarwun’s tailings facility expected to reach capacity by 2031 at current production rates, this curtailment will allow another four years to explore and develop technical solutions that could further extend the refinery’s life.

The company is assessing redeployment opportunities across its sites in Gladstone for employees affected by the scaling back of operations.

Rio Tinto aluminium Pacific operations managing director Armando Torres says the decision is difficult but necessary.

“While we have extensively explored options to develop a second tailings facility for Yarwun over a number of years, the scale of investment required is substantial and not currently economically viable,” he said.

“Reducing production from October 2026 enables us to continue alumina production until 2035 and trial pathways to secure the longer-term future of Yarwun.

“We are committed to our alumina and aluminium operations in Gladstone and will work closely with employees, contractors and suppliers to manage this transition.”

Rio Tinto’s bauxite mines and aluminium smelters will continue to operate at full capacity.

The announcement comes less than two months after Rio Tinto announced it would be potentially closing the Gladstone Power Station six years early.

The company will continue to focus on developing new tailings solutions at the operation, including neutralisation and centrifuge-based dry tailings.