- Queensland Government to partner with Rio Tinto to ensure the future of the Boyne Island Smelter near Gladstone
- Safeguarding 1000 jobs for the Central Queensland region and strengthening local supply chains
- Renewable energy secures jobs for the future
The Miles Government will partner with mining giant Rio Tinto to secure the long-term operation of the Boyne Island aluminium smelter near Gladstone, using the state's renewable energy to protect approximately 1,000 local jobs.
The Boyne Smelter has been operating since 1982 and is Australia's second largest aluminium smelter, manufacturing carbon anodes, aluminium production, and casting 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 the smelter'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.
In addition, Rio Tinto will introduce an additional Australian crewed vessel on its Cape York to Gladstone route, delivering more decent, fair paying maritime jobs for Queensland and providing broader supply chain benefits the length of the State.
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.
As stated by Premier Steven Miles:
"I am partnering with industry to secure the jobs of working Queenslanders.
"This partnership with Rio Tinto will use firmed renewables to safeguard jobs at Boyne Smelter for the future.
"We know that Central Queensland is key to the state's economy, which is why we are acting to protect anchor manufacturers like Boyne Smelter because they support jobs and supply chains well beyond their own operations.
"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.
"I also welcome the employment of additional Australian maritime crews and thank the MUA for their advocacy for Australian jobs.
As stated by Minister for Regional Development and Manufacturing, Glenn Butcher:
"I am so proud to be the Member for Gladstone at a time when there's so much growth happening in our community, and only our Labor government can be trusted to invest in these job generating opportunities.
"Gladstone is Queensland's industrial powerhouse, and the success of the Boyne Smelter is critical for our community and the livelihoods of the Gladstone residents that depend on it directly and indirectly.
"I'm pleased the Premier heard my calls to secure a clear pathway for the smelter during the green energy transition.
"While we're investing in the future of renewable energy in Queensland, the LNP are more focused on privatizing energy assets."
As stated by Minister for Resources and Critical Minerals Scott Stewart:
"Rio Tinto's operations in Gladstone are a prime example of pit to product when it comes to our resources industry.
"Boyne Smelter supports hundreds of local jobs and we want to see that continue which is why this partnership is so important.
"Having bauxite come via our blue highway from the Cape to Gladstone shows the direct supply chain of the resources industry.
"Queensland has a proud maritime history, and we welcome Rio Tinto's commitment to operating an additional Australian crewed vessel along our coastline."
As stated by Rio Tinto Chief Executive Australia Kellie Parker:
"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."
