Queensland Government and Rio Tinto partner on Gladstone’s Boyne Smelters
The Queensland Government and Rio Tinto (ASX: RIO) will work together under a partnership to support investment in renewable energy projects.
The agreement represents an important step towards securing a long-term future for Australia’s second-largest aluminium smelter, Boyne Smelters Limited (BSL) and thousands of jobs in central Queensland supported by the operations.
The partnership supports Queensland’s vision to establish Gladstone, Queensland, as a renewable energy hub and strengthens the electricity grid as Australia transitions to a cleaner energy future.
Through its Energy and Jobs Plan, the Queensland Government will support BSL’s financial viability from 2029 as the smelter transitions to renewable energy.
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, State 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, Northen Territory, and Weipa, Queensland, mines to operations in Gladstone.
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.
Rio Tinto chief executive Australia Kellie Parker says this agreement represents one of the most significant partnerships in its long history of operations in Queensland.
“It paves the way for a competitive, green-energy powered BSL, supporting employment and lowering Australia’s carbon footprint,” she said.
“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.
“While this is a critical part of the puzzle, we have more to do.
“We will continue to engage with the Federal Government on supportive industry policy to help sustain Australia’s green aluminium sector for the future.”