Rio Tinto to slash Boyne aluminium smelter's annual production
Rio Tinto has planned to cut down 80,000 tonnes of annual production and more than 100 jobs at its Boyne aluminium smelter in Gladstone. The annual aluminium production of the smelter is valued at $US160 million at current prices.
The reason behind this decision is that the company has not being able to negotiate power contracts with the state power providers.
Rio Tinto’s spokesman said, “Gladstone’s Boyne Smelters Ltd will be reducing production by 14 per cent after failing to secure a competitively priced electricity contract.”
“Boyne Smelters has been working hard to secure a competitive energy deal. Both parties have been negotiating in good faith but ultimately could not reach agreement,” the spokesman added.
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This time the company’s decision to cut production is almost double than the production cut of 45,000 tonnes and 80MW of power in January which was about 8 per cent of the total production.
Rio Tinto holds 59.4 per cent in Boyne aluminium smelter. The aluminium smelter has a total capacity of about 584,000 tonnes. Almost 85 per cent of power is provided to Boyne smelter from the Gladstone power station.
Norway's non-alloyed aluminium ingot export is estimated to be valued at US$226.8 mln in 2017
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