On Wednesday, March 25th, Australia announced that it would invest 2 billion Australian dollars (1.4 billion US dollars) over a period of 10 years to support the continued operation of the Boyne smelter, which is owned by the mining giant Rio Tinto and is the second largest aluminum smelter in the country.
Federal Industry Minister Tim Ayres said that this investment would be shared equally by the federal government and the Queensland government, and it would bring nearly 7.5 billion Australian dollars of new investment to Queensland. Rio Tinto will be responsible for the investment in the energy assets.
This funding support will ensure that Rio Tinto's majority-owned Boyne Smelters Limited will continue to produce aluminium after the current power contract expires in 2029, and will last at least until 2040.
The metal processing industry in Australia has been under the pressure of high energy and labor costs. The government announced last year to provide financial support for some facilities.
Rio Tinto announced on its website on the 25th that the Rio Tinto Group, the Queensland state government and the federal government have reached a landmark cooperation agreement to ensure the long-term future of the Gradshtyn Boyne aluminum smelter and to ensure that it remains internationally cost-competitive beyond the current power contract.
Based on the power purchase agreements (PPA) signed by Rio Tinto in recent years, the new agreement provides support for the long-term future of aluminium smelting in Queensland and offers 7.5 billion Australian dollars in funding for the state's new renewable energy and energy storage projects.
Under this agreement, the Queensland state government and the federal government will jointly invest a total of 2 billion Australian dollars over a period of 10 years until 2040. This will ultimately fulfill the cooperation terms previously announced by Queensland and Rio Tinto, and become part of the federal government's "Future Australian Manufacturing" strategy. This partnership supports the transition of this smelter located in the central part of Queensland to a long-term competitive power supply, and provides more long-term employment opportunities for the manufacturing industry.
