The Queensland Government will partner with Rio Tinto in an effort to ensure the long-term operation of the Boyne Island aluminium smelter.
Located near Gladstone, the smelter employs approximately 1000 locals and has been operating since 1982.
The Queensland Government will provide a support package accessible by Rio Tinto from 2029 to ensure the economic competitiveness of the smelter.
Rio Tinto will operate the smelter at full capacity until the end of 2040, committing to ongoing maintenance capital expenditure and meeting employment requirements.
“This partnership with Rio Tinto will use firmed renewables to safeguard jobs at Boyne Smelter for the future,” Queensland Premier Steven Miles said.
“We know that Central Queensland is key to the state’s economy, which is why we are acting to protect anchor manufacturers like Boyne Smelter because they support jobs and supply chains well beyond their own operations.
“This will create new opportunities to attract investment and jobs in manufacturing, energy supply chain capabilities, and advanced and value-added agriculture across the regions.”
Rio Tinto is also set to invest in demand response capabilities, with the smelter called on to reduce its electricity demand at times of tight supply.
“This agreement with the Queensland Government represents one of the most significant partnerships in our long history of operations in the state,” Rio Tinto chief executive Australia Kellie Parker said.
“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.”