A USD 2 billion funding deal has been announced to support the Boyne aluminium smelter in Queensland. The deal is expected to secure jobs in Weipa, where Rio Tinto’s bauxite operations supply raw materials to the smelter. The investment involves the Australian government, the Queensland government and Rio Tinto. It aims to keep the smelter operating, support jobs and improve the state’s energy system.

The Boyne smelter, located near Gladstone, is one of Australia’s largest aluminium plants. It is expected to continue operating until at least 2040. The funding will be provided over a period of 10 years. The deal is also part of the national “Future Made in Australia” plan.

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Rio Tinto’s bauxite operations in Weipa supply raw material to the smelter and employ more than 1,300 people. The agreement is expected to protect jobs in both Weipa and Gladstone. Local communities linked to mining and transport activities will also benefit.

The investment is closely linked to renewable energy development. It builds on earlier power purchase agreements that support about USD 7.5 billion in solar, wind and energy storage projects in Queensland. The aim is to reduce reliance on fossil fuels and lower long-term energy costs for aluminium production.

Jerome Pecresse, Chief Executive of Rio Tinto, said, “We have already signed, positions Boyne to be among the world’s first aluminium smelters underpinned by solar and wind power.”

Rio Tinto said the plan will help the smelter remain competitive in global markets. It also supports a full aluminium production chain within Queensland, from bauxite mining to alumina refining and aluminium smelting.

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Dale Last, Minister for Natural Resources and Mines for Manufacturing, said the investment is important for maintaining domestic manufacturing capacity and reducing risks from global supply disruptions. It also helps strengthen the regional industry and supports long-term employment. 

Industry representatives noted that the shift to renewable energy will help reduce emissions while keeping heavy industry running. Pecresse added, “Only in Queensland can we mine, refine and smelt to produce one of the world’s most versatile and ubiquitous metals, being aluminium, and we must protect that capability.”

The project is expected to support economic activity and jobs across the region. “This announcement backs in the thousands of Queensland workers that rely on smelter and gives industry the certainty it needs to invest in the region” said Pecresse.

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Minister for Industry and Science Tim Ayres said the deal supports jobs in Queensland and strengthens Australian industry. He added that the government is working with industry to support growth and development in regional areas.

Mapoon Mayor Ronaldo Guivarra, Mapoon Aboriginal Shire Council member, said the project is good for the community. He said it will help protect jobs and support the state. He added that aluminium production supports local people and will continue to grow.