Rio Tinto welcomes Australian government support for low-carbon aluminum Investing.com
MELBOURNE, Australia–( BUSINESS WIRE )– Rio Tinto welcomes the Australian Government’s announcement of aluminum production credits to help sustain and grow aluminum smelting in Australia and boost both regional communities and the nation’s manufacturing capacity.
Production credit, announced today as part of A future plan made in AustraliaIt puts Australia on track to become a leader in green metal manufacturing while supporting a continued strong economic future for the communities that have powered the nation’s aluminum industry for generations.
It provides targeted support for Australian aluminum smelters to transition to reliable renewable electricity before 2036. Under this initiative, facilities will be eligible for support for their production over a 10-year period. The credit aims to encourage domestic aluminum smelters to invest, protect Australian jobs and provide confidence in strengthening the country’s world-class aluminum industry.
The support comes at a critical time for Australia’s aluminum sector as demand for sustainable production continues to grow as major producers and infrastructure developers around the world look for low-carbon material supplies.
Rio Tinto (NYSE:) CEO Australia Kelly Parker said: The Australian Government’s commitment to local manufacturing demonstrates the country’s strong belief in its position in the global economy. As traditional energy sources for heavy industries become increasingly uncompetitive, today’s announcement is a critical component in helping future-proof the industry. Such support is critical to sustaining and growing regional economies.
“As global industrial customers and consumers increasingly focus on low-carbon products, this support demonstrates Australia’s ability to produce aluminum, which is essential to the global energy transition.
The announcement builds on Rio Tinto’s partnership with the Queensland Government announced in August 2024 to support Boyne Smelters Limited’s (BSL) transition to renewable energy, as well as Rio Tinto’s strong progress in renewable energy to provide affordable electricity to its aluminum operations. . This includes the signing of Australia’s largest renewable power purchase agreement to supply Gladstone’s aluminum operations in early 2024, whereby Rio Tinto will purchase most of the electricity from WindLab’s proposed 1.4GW Bungaban wind farm project, adding to the development agreement previously reached with European Energy. 1.1GW Upper Calliope Solar Farm. These projects make Rio Tinto the largest renewable energy industrial buyer in Australia.
Rio Tinto’s integrated aluminum production chain in Queensland is a significant economic driver, directly employing more than 4500 people and supporting thousands more Australian livelihoods. The company’s operations cover over 3000 jobs in Gladstone alone, 1000 of which are at BSL. In addition, Rio Tinto’s bauxite operations in Wipa employ over 1,300 people and supply raw materials to Gladstone’s production facilities.
Rio Tinto welcomes the announcement that it will become 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 1200 full-time jobs.
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Category: BSL
Source: Rio Tinto
