The Miles Government has announced a partnership with mining giant Rio Tinto to secure the long-term operation of the Boyne Island aluminium smelter near Gladstone. This agreement will utilize the state’s renewable energy to protect approximately 1,000 local jobs.
The Boyne Smelter, operating since 1982, is Australia’s second-largest aluminium smelter, manufacturing carbon anodes, aluminium production, and casting molten metal into aluminium products for export. The government has committed to a support package, accessible by Rio Tinto from 2029, to ensure the smelter’s economic competitiveness as it transitions to renewable energy sources.
Under the agreement, Rio Tinto must operate the smelter at full capacity until at least 2040, maintain ongoing capital investment, and meet employment commitments. Additionally, the company will invest in demand response capabilities, reducing electricity demand during peak periods to ease pressure on the national grid.
Rio Tinto will also introduce an additional Australian crewed vessel on its Cape York to Gladstone route, creating maritime jobs and strengthening the state’s supply chain.
Premier Steven Miles emphasized the importance of the agreement: “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.”
Minister for Regional Development and Manufacturing, Glenn Butcher, highlighted Gladstone’s key role in Queensland’s industrial economy: “Gladstone is Queensland’s industrial powerhouse, and the success of the Boyne Smelter is critical for our community and livelihoods.”
Minister for Resources and Critical Minerals, Scott Stewart, noted the broader impact: “Boyne Smelter supports hundreds of local jobs, and we want to see that continue, which is why this partnership is so important.”
Rio Tinto Chief Executive Australia, Kellie Parker, described the agreement as a major milestone: “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 agreement is subject to the completion of Rio Tinto’s energy contracting activities, joint venture approvals, and a Commonwealth Government contribution to the smelter’s long-term viability.
Construction and operational changes are expected to begin in the coming years, solidifying Boyne Smelter’s role in Queensland’s transition to a greener economy.