REG - Rio Tinto - Boyne aluminium smelter: long-term futuresecured

Rio TintoAnnouncement

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RNS Number : 9800X  Rio Tinto PLC  25 March 2026

 

 

Notice to
ASX/LSE

 

Rio Tinto, Queensland and Commonwealth secure long-term future for Boyne
aluminium smelter at Gladstone

25 March 2026

 

 

 

Rio Tinto, the Queensland Government and the Commonwealth Government have
struck a landmark partnership to secure a long-term future for the Boyne
aluminium smelter at Gladstone and ensure it remains internationally
cost-competitive beyond its current power contract.

 

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

 

Under the deal, the Queensland and Commonwealth Governments will invest a
combined A$2 billion over 10 years to 2040, finalising the terms of a
previously announced partnership between Queensland and Rio Tinto, and forming
part of the Federal Government's Future Made in Australia initiative. The
partnership supports the transition to long-term competitive power for the
smelter and manufacturing jobs in Central Queensland for the longer term.

 

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.

 

Rio Tinto Aluminium & Lithium Chief Executive Jérôme Pécresse said:
"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.

 

"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.

 

"It also ensures heavy manufacturing like aluminium smelting can continue in
Gladstone for the long term, and preserves one of the few fully integrated
aluminium value chains in the world - from bauxite mining to alumina refining
to aluminium smelting all in Queensland - as demand for aluminium continues to
grow with the energy transition."

 

In addition to its previously announced PPAs, Rio Tinto has agreed to offtake
40% of Lightsource bp's Lower Wonga solar and battery hybrid project near
Gympie, equivalent to 112MWac of solar capacity and approximately three hours
duration of associated battery storage. This brings total Queensland renewable
power contracted by Rio Tinto to more than 2.8GW.

 

 

 

About Rio Tinto and Boyne Smelters Limited

 

Boyne Smelters Limited (BSL) has been operating since 1982 and is Australia's
second largest aluminium smelter. Located at Boyne Island in central
Queensland, BSL's activities include manufacturing carbon anodes in the carbon
plant, aluminium production (smelting) in reduction lines, and casting of
molten metal into aluminium products ready to ship. The smelter is adjacent
to, and connected via a conveyor belt, to the Queensland Alumina Limited
refinery for the supply of alumina. BSL is owned by Rio Tinto (73.5%), YKK
Aluminium (9.5%), UACJ (9.29%) and Southern Cross Aluminium (7.71%).

 

Rio Tinto's integrated aluminium production chain in Queensland is a
significant economic driver, employing over 4,500 people directly and
supporting thousands more Australian livelihoods. The company's operations in
Gladstone alone account for more than 3,000 jobs, with 1,000 of those at BSL.
Additionally, Rio Tinto's bauxite operations in Weipa employ more than 1,300
people, supplying raw materials to the Gladstone manufacturing facilities.

 

In Queensland, Rio Tinto has contracted more than 2.8GW of new renewable
energy and more than 600MW storage capacity from five projects since January
2024:

 

European Energy Upper Calliope solar project - 1.1GW
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-drive-development-of-australias-largest-solar-farm-at-gladstone)

Bungaban wind project - 1.1GW
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-signs-australias-biggest-renewable-power-deal-as-it-works-to-repower-its-gladstone-operations)

Smoky Creek & Guthrie's Gap Solar Power Station solar and battery - 540MW
/ 2160MWh
(https://www.riotinto.com/en/news/releases/2025/rio-tinto-and-edify-energy-sign-landmark-solar-and-battery-agreement-for-rio-tintos-gladstone-operations)

Lightsource bp Lower Wonga - 112MW / 3.24MWh

 

 

 

Contacts

Please direct all enquiries to media.enquiries@riotinto.com

 

 

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Media Relations,

                              US & Latin America

 

                                                        Jesse Riseborough

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 Investor Relations,     Investor Relations,
 United Kingdom          Australia

 
 

 Rachel Arellano         Tom Gallop

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                       Eddie Gan-Och
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 Laura Brooks

 M +44 7826 942 797

 Weiwei Hu

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 Rio Tinto plc           Rio Tinto Limited

 
 

 6 St James's Square     Level 43, 120 Collins Street

 London SW1Y 4AD         Melbourne 3000

 United Kingdom          Australia

 T +44 20 7781 2000      T +61 3 9283 3333

 Registered in England   Registered in Australia

 No. 719885              ABN 96 004 458 404

This announcement is authorised for release to the market by Andy Hodges, Rio
Tinto's Group Company Secretary.

 

 

riotinto.com

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