On August 15, 2024, the Queensland Government and Rio Tinto unveiled a partnership designed to protect and bolster Gladstone’s Boyne Smelters Limited, a cornerstone of Australia’s heavy industrial manufacturing. This collaboration reflects a strategic effort to secure BSL’s long-term future by investing in renewable energy projects and ensuring the smelter’s continued operational capacity. As Australia's second-largest aluminium smelter, BSL plays a critical role in the regional and national economy, making this partnership a vital initiative for sustaining both employment and industrial output in central Queensland.
The agreement aligns with Queensland's broader vision of transforming Gladstone into a renewable energy hub. As part of this vision, BSL will transition towards renewable energy sources, supported by the Queensland Government's “Energy and Jobs Plan.” This plan aims to provide financial backing for BSL’s viability post-2029, ensuring that the smelter can maintain its production capacity while reducing its carbon footprint. This transition is also in line with the Australian Government’s Future Made in Australia Plan, which seeks to decarbonize the aluminium industry, a sector crucial for the nation’s green energy future.
Rio Tinto’s commitment to the partnership extends beyond mere financial investment. The company has pledged to maintain BSL’s full operational capacity, safeguarding over 1,000 jobs at the smelter and contributing significantly to the local and state economies. BSL’s annual production capacity of more than 500,000 metric tons of aluminium underscores its importance as a major player in the global aluminium market. Moreover, Rio Tinto plans to expand its coastal shipping capacity, adding a fifth domestically crewed vessel to its existing fleet, which transports bauxite from the company’s Gove and Weipa mines to Gladstone’s operations.
In addition to operational commitments, Rio Tinto will channel further investments into sustainable energy projects across Queensland. These investments build upon the company’s existing involvement in Australia's largest solar and wind projects, reinforcing the state’s renewable energy infrastructure. By supporting the development of sustainable energy sources, Rio Tinto and the Queensland Government aim to enhance the reliability of the electricity grid, particularly during periods of peak demand, thereby securing Gladstone’s future as a renewable energy hub.
The partnership between Rio Tinto and the Queensland Government is contingent on several factors, including the completion of Rio Tinto's energy contracting activities and relevant joint venture approvals. Additionally, the establishment of a clear pathway by the Australian Government for a decarbonised aluminium industry is essential for the agreement’s full implementation. These conditions reflect the complexity of transitioning an industry as vital as aluminium production towards a more sustainable future.
Rio Tinto's Chief Executive Australia, Kellie Parker, highlighted the significance of this partnership, describing it as one of the most important in the company’s history of operations in Queensland. She emphasized that this agreement is crucial for positioning BSL as a competitive, green-energy powered facility, which not only supports employment but also contributes to lowering Australia’s carbon footprint. Parker noted that while this partnership is a major step forward, further engagement with the Federal Government is necessary to sustain Australia’s green aluminium sector in the long term.
Boyne Smelters Limited, operating since 1982, has been a pivotal part of Australia’s aluminium industry. Located on Boyne Island, BSL’s operations include the manufacturing of carbon anodes, aluminium production through smelting, and the casting of molten metal into ready-to-ship aluminium products. The smelter is closely integrated with the Queensland Alumina Limited refinery, which supplies alumina via a conveyor belt. Rio Tinto’s operations in Queensland, including BSL, employ over 4,500 people directly, with thousands more jobs supported indirectly, underscoring the company’s significant economic impact on the region.
