The Queensland Government announced on Wednesday (14 August) that it has partnered with mining giant Rio Tinto to secure the long-term future of Australia’s second-largest aluminium smelter, BSL, and support investment in renewable energy projects.
The partnership supports Queensland’s vision to establish the city of Gladstone as a hub for renewable energy and strengthen the electricity grid as Australia transitions to cleaner energy.
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Economic support will be provided to BSL, securing the smelter’s financial viability from 2029 as it transitions to renewable energy.
Rio Tinto said it will invest to maintain BSL’s operational capacity with the ambition of keeping Australia as the major exporter of aluminium globally. BSL has been operational since 1982 and has an annual production capacity of 500,000 tonnes. Rio Tinto’s investment will look to maintain this and create more than 1,000 direct jobs.
The partnership between Rio Tinto and the Queensland Government complements ongoing developments by the Australian Government to support a decarbonised aluminium industry as a part of the country’s Future Made in Australia Plan.
Rio Tinto is helping BSL develop systems to manage its power consumption during times of peak demand and strengthen the electricity grid.
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By GlobalDataThe current Premier of Queensland, Steven Mills, commented: “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 value-added agriculture across the regions.”
The agreement between Rio Tinto and the Queensland Government remains contingent of the company’s energy contracting activities, relevant joint venture approvals and the establishment of a pathway for decarbonising the aluminium industry by the Australian Government.
Chief executive of Rio Tinto, Kellie Parker, explained that the partnership paves the way for a competitive, green energy-powered BSL, supporting employment, lowering Australia’s carbon footprint and supporting the country’s status as a leading global supplier of aluminium at a time when the world needs the metal for the green energy transition.
Parker pledged that despite the partnership, government and industry must do more to help sustain and develop Australia’s green aluminium sector for the future.
