Rio Tinto buys Mitsubishi’s share of Queensland aluminum smelter

The reordering of Australian and New Zealand alumina and aluminium production assets continues with Rio Tinto announcing it has completed the acquisition of Mitsubishi’s 11.65 percent stake in Boyne Smelters Limited.

BSL owns and operates the Boyne Island aluminium smelter in Gladstone, Queensland which manufactures carbon anodes and aluminium, casting 295,000 tonnes of molten metal into aluminium products for export.

Following completion of the transaction, Rio Tinto’s interest in BSL is now 71.04 percent.

The company said in a statement: “Rio Tinto looks forward to continuing to work with its BSL joint venture partners and other stakeholders on securing a competitive low-carbon future for its Gladstone operations.”

Australia and New Zealand smelters are ageing and the emergence of renewables as a way to decarbonise aluminium production are factors in a general ownership shake up.

Rio Tinto previously purchased Sumitomo Chemical Company’s (SCC) 2.46 percent stake in BSL, and SCC’s 20.64 percent interest in New Zealand Aluminium Smelters (NZAS), which owns and operates the Tiwai Point aluminium smelter in NZ.

In August a partnership with the Queensland government providing renewable energy was announced allowing Boyne Island to operate into the 2040s.

The acquisition of Mitsubishi’s stake in BSL was for an undisclosed price, as is also the case for the agreed acquisitions of SCC’s stakes in BSL and NZAS.

Also in August, Alcoa Corporation completed the acquisition of Alumina Limited, taking control of the AWAC joint venture whose assets comprise bauxite mines and alumina and aluminium refineries in Australia, Brazil, Spain, Saudi Arabia and Guinea.

Alcoa has two aluminium smelters in Victoria at Portland and Point Henry and operates three alumina refineries in Western Australia at Kwinana, Pinjarra and Wagerup which are fed by two bauxite mines.

In September the Minister for Climate Change and Energy Chris Bowen confirmed the possibility that power from a recently declared wind farm precinct offshore from Victoria could power Alcoa’s Portland Aluminium smelter.

The Portland smelter is owned by Alcoa of Australia (55%), CITIC (22.5%) and Marubeni Aluminium Australia (22.5%).

The Point Henry smelter was owned by the AWAC joint venture, which was owned 60 percent by Alcoa and 40 percent by Alumina Ltd.

Further reading:
Rio’s Boyne smelter to be powered by renewables
Alcoa buys Alumina Ltd, takes over bauxite and aluminium assets
Offshore wind could power aluminium smelter – Bowen

Picture: Rio Tinto