Rio Tinto, the Queensland Government and the Commonwealth Government announced a landmark partnership that will secure the Boyne aluminium smelter’s future in Gladstone until at least 2040. The 10‑year deal, worth A$2 billion, guarantees the smelter a stable, low‑cost power supply after its current electricity contract expires in 2029, ensuring the facility remains internationally competitive.
Under the agreement, the governments will invest A$2 billion over the next decade to support the smelter’s transition to renewable‑powered operations. The partnership also includes a 40 % stake in Lightsource bp’s Lower Wonga solar and battery hybrid project near Gympie, adding 112 MWac of solar capacity and three hours of battery storage. This move aligns with the Federal Government’s Future Made in Australia initiative and reinforces Rio Tinto’s commitment to decarbonising its aluminium value chain.
The Boyne smelter, owned 73.5 % by Rio Tinto, is Queensland’s second‑largest aluminium producer and a key employer in Central Queensland. The partnership will preserve approximately 1,000 direct jobs at the smelter and support an estimated 2,000 additional regional roles, while the Commonwealth’s investment is projected to deliver 3,000 jobs in Gladstone and Central Queensland, according to Minister Tim Ayres.
"This is the biggest industrial investment decision in Queensland's history: $1 billion dollars from the Albanese Government as part of our broader Future Made in Australia package, $1 billion dollars matched from Queensland and $7.5 billion investment from Rio Tinto in new electricity generation capability in Queensland. This is a Future Made in Australia decision that delivers 3,000 jobs in Gladstone and in Central Queensland, secures investment in this facility, helps us build economic resilience, will push electricity prices down because it'll be additional electricity capacity," said Minister Tim Ayres.
"This transformative partnership with the Queensland and Australian governments will ensure Boyne Smelter remains internationally competitive, strengthens the Australian aluminium sector for the future and supports the transformation and decarbonisation of the Queensland energy system," said Rio Tinto Aluminium & Lithium Chief Executive Jérôme Pécresse. "As fossil fuels become increasingly expensive, this investment, combined with the power purchase agreements we have already signed, positions Boyne to be among the world's first aluminium smelters underpinned by solar and wind power."
The partnership positions Rio Tinto to maintain a competitive edge in the global aluminium market while advancing its sustainability agenda. By securing a renewable‑energy supply, the smelter can reduce its carbon footprint, lower operating costs, and meet growing demand for low‑carbon aluminium. The deal also supports Queensland’s transition to renewable energy, as the smelter’s current power supply comes from the coal‑fired Gladstone Power Station slated for closure in 2029.
The A$2 billion investment is part of Rio Tinto’s broader A$7.5 billion renewable energy commitment in Queensland, underscoring the company’s strategy to decarbonise its operations and supply chain. The partnership also demonstrates the Australian government’s focus on securing critical industrial capabilities and fostering domestic manufacturing.
"At a time when supply‑chain disruptions are being felt across the globe, this investment is needed now more than ever," added Queensland Minister Dale Last.
The agreement ensures the Boyne smelter’s long‑term viability, preserves thousands of jobs, and positions the facility as a leader in renewable‑powered aluminium production, reinforcing Rio Tinto’s commitment to sustainability and competitiveness.
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