Mining company Rio Tinto has reached a strategic agreement with the Queensland Government and the Australian federal government to ensure the long-term viability of the Boyne aluminium smelter, located in Gladstone. The aim is to maintain its international competitiveness once its current energy contract ends.
The agreement includes a joint investment of $1.4 billion through 2040 by the public administrations, under the Future Made in Australia initiative. This funding will support progress in the transition to a more competitive and sustainable electricity supply, which is key to the continuity of industrial activity and employment in the Central Queensland region.
The agreement is underpinned by the power purchase agreements (PPAs) signed by Rio Tinto in recent years, which support more than $5.25 billion in new renewable energy and storage projects in the state. Thanks to this strategy, the plant, operated by Boyne Smelters Limited, in which Rio Tinto holds a majority stake, will be able to continue producing aluminium beyond 2029, when its current contract expires, extending its operations at least through 2040.
As part of the associated energy development, Rio Tinto has also agreed to purchase 40% of the output from the Lower Wonga hybrid solar and storage project, backed by Lightsource bp. This share is equivalent to 112 MW of solar capacity, together with approximately three hours of battery storage. With this, the multinational increases the total volume of renewable energy contracted in Queensland to more than 2.8 GW.
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