Rio Tinto gets $2b government deal to keep Boyne aluminium smelter open to 2040
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The news: Rio Tinto has signed a long-term partnership with the Commonwealth Government to support the future of aluminium smelting in Queensland, ensuring the Boyne aluminium smelter at Gladstone remains cost competitive beyond its current power contract.
The context: Under the agreement, the Queensland and Commonwealth governments will invest a combined $2 billion over 10 years to 2040, finalising a previously announced partnership as part of the Federal Government’s Future Made in Australia initiative.
In addition, Boyne Smelters, in which Rio Tinto holds a majority stake, will continue aluminium production through to at least 2040.
Rio Tinto has also agreed to offtake 40% of Lightsource bp’s Lower Wonga solar and battery hybrid project, bringing its total contracted renewable power in Queensland to more than 2.8GW.
What they said: “As fossil fuels become increasingly expensive, this investment, combined with the power purchase agreements we have already signed, positions Boyne to be among the world’s first aluminium smelters underpinned by solar and wind power,” Rio Tinto Aluminium & Lithium Chief Executive Jérôme Pécresse said.
The source: ASX
