Rio’s Boyne smelter to be powered by renewables

Rio Tinto’s Boyne Island smelter in Queensland will operate into the 2040s following a partnership with the state government that will see the smelter supplied with renewable energy by the state’s government owned generators.

The agreement safeguards 1,000 jobs and ensure the continuing manufacture of carbon anodes, aluminium production, and casting of 295,000 tonnes of molten metal into aluminium products for export.

The government has agreed to provide a support package, accessible by Rio Tinto from 2029, to ensure Boyne Smelters Ltd’s economic competitiveness as it shifts to cleaner and renewable energy sources.

Under the agreement, Rio Tinto will be required to operate the smelter at full capacity until the end of 2040, commit to ongoing maintenance capital expenditure and meet employment requirements.

Rio Tinto have also committed to invest in demand response capabilities, with the smelter called on to reduce its electricity demand at times of tight supply, reducing pressure on the national grid and wholesale energy prices.

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 for the future.”

In addition, Rio Tinto will introduce an additional Australian crewed vessel on its Cape York to Gladstone route.

The agreement is conditional upon the completion of Rio Tinto’s energy contracting activities, relevant joint venture approvals and Commonwealth Government contribution to the ongoing viability of Boyne Smelter, via industry policy.

Queensland Premier Steven Miles said: “This partnership with Rio Tinto will use firmed renewables to safeguard jobs at Boyne Smelter for the future.

“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.”

Picture: Rio Tinto