Rio Tinto has struck a landmark partnership with the Queensland and Commonwealth governments to secure the long-term future of the Boyne aluminium smelter at Gladstone.

The move sees the smelter remain as internationally cost-competitive beyond its current power contract and helps secure the long-term future of aluminium smelting across the state.

The agreement supports a long-term future for aluminium smelting in Queensland, building on power purchase agreements signed by Rio Tinto in recent years to underwrite $7.5 billion in new renewable energy and storage in the state.

Under the deal, the Queensland and Commonwealth governments will invest a combined $2 billion over the next 10 years to 2040, forming part of the Federal Government’s Future Made in Australia initiative.

Combined with what will be some of Australia’s largest solar and wind power investments, underwritten by Rio Tinto, the partnership ensures Boyne Smelters Limited – the owner of the smelter in which Rio Tinto has a majority stake – will continue aluminium production beyond the completion of its current power contract in 2029, through to at least 2040.

“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,” Rio Tinto aluminium and lithium chief executive Jérôme Pécresse said.