Rio Tinto welcomes Australian government support for low-carbon aluminum By Investing.com
MELBOURNE, Australia–( BUSINESS WIRE )–Rio Tinto welcomes the Australian Government’s announcement of an aluminum production loan to help sustain and grow aluminum smelting in Australia, and significantly improve the country’s regional communities and manufacturing capabilities.
Credit for production, published today as part of Future plan Made in Australiaputs Australia on track to become a leader in the production of environmentally friendly metals, while supporting a continued strong economic future for the communities that have driven the nation’s aluminum industry for generations.
It will provide targeted support to Australian aluminum smelters that switch to reliable, renewable electricity before 2036. Under the initiative, plants will be eligible for support for their production over a 10-year period. The loan aims to give local aluminum smelters the confidence to invest, securing jobs in Australia and strengthening the country’s world-class aluminum industry.
The support comes at a crucial time for Australia’s aluminum sector, as major producers and infrastructure developers around the world increasingly seek low-carbon materials, fueling growing demand for sustainably produced products.
Rio Tinto (NYSE: ) CEO, Australia, Kellie Parker said: The Australian Government’s commitment demonstrates strong confidence in domestic manufacturing and the country’s position in the global economy. As traditional energy sources for heavy industry become increasingly uncompetitive, today’s announcement is critical in helping the industry prepare for the future. Such support is essential for the sustainability and growth of regional economies.
“As global industrial buyers and consumers increasingly focus on low-carbon products, this support signals Australia’s potential to be a major supplier of the aluminum required for the global energy transition, creating the foundation for local businesses and manufacturing to thrive.”
The announcement builds on Rio Tinto’s partnership with the Queensland Government, announced in August 2024, to support Boyne Smelters Ltd’s (BSL) transition to renewable energy, as well as Rio Tinto’s strong progress in securing renewable energy to provide competitively priced electricity for its aluminum operations. . This includes the signing of Australia’s largest renewable power purchase agreement in early 2024 to supply Gladstone’s aluminum operations, with Rio Tinto buying the majority of electricity from Windlab’s planned 1.4GW Bungaban wind power project, and an earlier agreement with European Energy to boost development of 1.1 GW Upper Calliope Solar Farm. These projects will make Rio Tinto the largest industrial customer of renewable energy in Australia.
Rio Tinto’s integrated aluminum production chain in Queensland is a significant economic driver, employing more than 4500 people directly and supporting the livelihoods of thousands of other Australians. The company’s Gladstone operation alone has more than 3,000 jobs, of which 1,000 are at BSL. In addition, Rio Tinto’s bauxite operations in Weipa employ more than 1,300 people who supply raw materials to Gladstone’s production facilities.
Rio Tinto also welcomes the announcement as a 51.55% owner of Tomago Aluminum Company and looks forward to working with the New South Wales Government to secure the future of that operation. Tomago, in the Hunter Valley, is Australia’s largest aluminum smelter and directly supports more than 1,200 full-time jobs.
See the original version on businesswire.com: https://www.businesswire.com/news/home/20250118099373/en/
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Michelle Lee
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Category: BSL
Source: Rio Tinto
