Queensland and Rio Tinto Collaborate to Secure Future of Boyne Smelters in Gladstone

The Queensland Government and Rio Tinto are collaborating to secure a key part of the State’s heavy industrial manufacturing sector in Gladstone through a partnership aimed at supporting investment in renewable energy projects.

The agreement announced on August 15, 2024, marks a crucial move toward ensuring the long-term future of Boyne Smelters Limited (BSL), Australia’s second-largest aluminum smelter, along with the thousands of jobs in central Queensland that rely on its operations.

The partnership aligns with Queensland’s goal to make Gladstone a renewable energy hub and bolsters the electricity grid as Australia moves towards a cleaner energy future. Collaboration between Rio Tinto and the Queensland Government will enhance current policy efforts by the Australian Government to support a decarbonized aluminum industry under its Future Made in Australia Plan.

The agreement between the Queensland Government and Rio Tinto outlines several key highlights:

•              Economic Support: Under its "Energy and Jobs Plan," the Queensland Government will bolster Boyne Smelters Limited (BSL) financially from 2029 as the smelter transitions to renewable energy.

•              Operational Commitments & Employment: Rio Tinto will invest in maintaining BSL's full operational capacity, reinforcing Australia’s position as a leading aluminum exporter. With an annual production capacity exceeding 500,000 tonnes of aluminum and over 1,000 direct employees, BSL will remain a crucial asset to the local, Queensland, and national economies. Additionally, Rio Tinto plans to expand its coastal shipping capacity by adding a fifth domestically crewed vessel to its fleet, enhancing the transport of bauxite from its Gove and Weipa mines to Gladstone.

•              Renewable Energy Investment: Rio Tinto will further its sustainable energy investments in Queensland, augmenting its existing support for the State's largest solar and wind projects.

•              Gladstone Transformation: The partnership supports Queensland's vision of making Gladstone a renewable energy hub. BSL will develop strategies to manage power consumption during peak demand periods and help strengthen the local electricity grid.

The agreement is subject to the completion of Rio Tinto's energy contracting activities, obtaining the necessary joint venture approvals, and the establishment of a clear Australian Government pathway for a decarbonised aluminium industry.

Rio Tinto Chief Executive Australia Kellie Parker stated, "This partnership with the Queensland Government marks one of the most significant collaborations in our extensive history in the State. It sets the stage for a competitive, green-energy-powered BSL, boosting employment and reducing Australia's carbon footprint. This agreement will bolster Australia's position as a leading global supplier of aluminium, essential for the green energy transition.

"While this is a crucial step forward, there is more work ahead. We will keep working with the Federal Government to advocate for supportive industry policies that will sustain Australia’s green aluminium sector for the long term."

Operating since 1982, Boyne Smelters Limited (BSL) is Australia’s second-largest aluminium smelter. Situated at Boyne Island in central Queensland, BSL encompasses several key activities: producing carbon anodes in its carbon plant, smelting aluminium in reduction lines, and casting molten metal into finished aluminium products for shipping. The smelter is directly linked to the Queensland Alumina Limited refinery through a conveyor belt, facilitating the supply of alumina.