MELBOURNE, Australia–( BUSINESS WIRE )– Rio Tinto welcomes the Australian Government's announcement of an aluminum production credit to help sustain and grow aluminum smelting in Australia, and significantly strengthen the country's regional communities and manufacturing capabilities.
The production credit was announced today as part of The future is made in Australia's planputs Australia on the path to becoming a leader in green metals manufacturing, while supporting the continued strong economic future of communities that have powered the country's aluminum industry for generations.
It will provide targeted support to Australian aluminum smelters that transition to reliable, renewable electricity before 2036. Under this initiative, facilities will be eligible for support for their production over 10 years. The credit aims to give local aluminum smelters the confidence to invest, secure Australian jobs and boost the country's world-class aluminum industry.
This support comes at a pivotal time for Australia's aluminum sector, as major manufacturers and infrastructure developers around the world increasingly seek to source low-carbon materials, driving demand for sustainably produced products.
The Australian Government's commitment demonstrates strong confidence in local manufacturing and the country's place in the global economy, said Kelly Parker, CEO of Rio Tinto (NYSE:). As traditional energy sources for heavy industry become increasingly uncompetitive, today's announcement is an important part of helping to future-proof this industry. This support is critical to the sustainability and growth of regional economies.
“With global industrial customers and consumers increasingly focused on low-carbon products, this support signals Australia’s potential to be a key supplier of the aluminum needed for the global energy transition, creating a foundation for thriving local businesses and manufacturing.”
This announcement builds on Rio Tinto's partnership with the Queensland Government, announced in August 2024, to support Boyne Smelters Ltd's (BSL's) transition to renewable energy, as well as Rio Tinto's strong progress in securing renewable energy to provide competitively priced electricity to its aluminum operations. With it. . This includes the signing of Australia's largest renewable energy offtake agreement in early 2024 to supply Gladstone's aluminum operations, where Rio Tinto will buy the majority of electricity from Windlab's planned 1.4 GW Bungaban wind project, and a previous agreement with European Energy to advance the development of the Windlab energy project. Wind. Solar farm in Upper Calliope with a capacity of 1.1 GW. These projects will make Rio Tinto the largest industrial buyer of renewable energy in Australia.
Rio Tinto's integrated aluminum production chain in Queensland is a significant economic engine, directly employing more than 4,500 people and supporting thousands more Australian livelihoods. The company's operations in Gladstone alone account for more than 3,000 jobs, including 1,000 at BSL. In addition, Rio Tinto's bauxite operations at Weipa employ more than 1,300 people and supply raw materials to Gladstone's manufacturing facilities.
Rio Tinto also welcomes the announcement that it is a 51.55% owner of Tomago Aluminum and looks forward to working with the NSW Government to help secure the future of that operation. Tomago, located in the Hunter Valley, is Australia's largest aluminum smelter, directly supporting more than 1,200 full-time jobs.
View source version on Businesswire.com: https://www.businesswire.com/news/home/20250118099373/en/
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Category: BSL
Source: Rio Tinto
