Queensland's bold vision: Rio Tinto partnership paves the way for a decarbonised aluminium industry

The Queensland Government and Rio Tinto have partnered to promote renewable energy development in a significant move to protect heavy industry manufacturing around Gladstone. This agreement marks a critical step toward ensuring the long-term viability of Boyne Smelters Limited (BSL), Australia's second-largest aluminium smelter while protecting thousands of jobs in central Queensland.

The partnership aligns with Queensland's ambitious vision to transform Gladstone into a renewable energy hub, bolstering the state's electricity grid as Australia advances toward a cleaner energy future. By joining forces, Rio Tinto and the Queensland Government are reinforcing their commitment to a sustainable aluminium industry, a goal that complements the Australian Government's Future Made in Australia Plan aimed at supporting a decarbonised industrial sector.

This collaboration is expected to play a pivotal role in both the local economy and Australia's broader energy transition. It is set to provide a blueprint for industry-government partnerships to pursue sustainable industrial growth, potentially transforming the region and setting a precedent for similar initiatives across the country.

Highlights of the Queensland Government's agreement with Rio Tinto include:

• Economic support: Through its "Energy and Jobs Plan', the Queensland Government will support BSL's financial viability from 2029 as the smelter transitions to renewable energy.
• Operational commitments & employment: Rio Tinto will invest to maintain BSL's full operational capacity, supporting Australia's ambition to remain a major exporter of aluminium. This ensures that BSL, which has an annual production capacity of more than 500,000 tonnes of aluminium and directly employs more than 1000 people, will continue significantly contributing to the local, Queensland, and national economies. Rio Tinto will also work to expand its coastal shipping capacity and add a fifth domestically crewed vessel to its existing fleet of four. These ships transport bauxite from the company's Gove and Weipa mines to operations in Gladstone.
• Renewable energy investment: Rio Tinto commits to additional sustainable energy investments in Queensland, building on its existing commitments to Australia's largest solar and wind projects across the State.
• Gladstone transformation: Support for Queensland's vision to establish Gladstone as a renewable energy hub, with BSL to develop capabilities to manage power consumption during times of peak demand and strengthen the electricity grid.

The agreement is still dependent on the finalisation of Rio Tinto's energy contracting activities, necessary joint venture approvals, and the Australian government's creation of a pathway for a decarbonised aluminium industry.

Rio Tinto Chief Executive Australia Kellie Parker said, "This agreement with the Queensland Government represents one of the most significant partnerships in our long history of operations in the State."

"It paves the way for a competitive, green-energy powered BSL, supporting employment and lowering Australia's carbon footprint. 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 in the future."

Boyne Smelters Limited (BSL), operating since 1982, is Australia's second-largest aluminium smelter. Situated on Boyne Island in central Queensland, BSL's operations encompass the manufacturing of carbon anodes in its carbon plant, aluminium production through smelting in reduction lines, and casting molten metal into aluminium products ready for shipment. The smelter is conveniently located next to the Queensland Alumina Limited refinery, with a conveyor belt connecting the two facilities to ensure a steady alumina supply.