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 promote both regional communities as the country’s manufacturing capabilities.
The production credit, announced today as part of the Future Plan Made in Australiaputs Australia on a path to becoming a leader in green metals manufacturing, while supporting a continued strong economic future for the communities that have powered the country’s aluminum industry for generations.
It will provide targeted support to Australian aluminum smelters transitioning to reliable, renewable electricity by 2036. Under the initiative, facilities will be eligible to receive support for their production over a 10-year period. The credit aims to give local aluminum smelters the confidence to invest, securing Australian jobs and strengthening the country’s world-class aluminum industry.
The support comes at a crucial time for Australia’s aluminum sector, as major manufacturers and infrastructure developers around the world increasingly look to supply low-carbon material, driving growing demand for sustainably produced products.
Rio Tinto (NYSE 🙂, Australia) CEO Kellie Parker said: The Australian government’s commitment shows strong confidence in domestic manufacturing and the nation’s position in the global economy. As traditional energy sources for As heavy industry becomes increasingly less competitive, today’s announcement is a critical piece to help prepare the industry for the future. That support is crucial to sustaining and growing regional economies.
“As global industrial customers and consumers increasingly focus on low-carbon products, this support signals Australia’s potential to be a major supplier of the aluminum needed for the global energy transition, creating a foundation for local businesses and manufacturing to prosper.
The announcement builds on Rio Tinto’s partnership with the Queensland Government, announced in August 2024, to support Boyne Smelters Ltd’s (BSL) transition to renewable energy, as well as Rio Tinto’s strong progress in securing renewable energy to provide competitively priced electricity for its aluminum operations. . This includes signing Australia’s largest renewable energy purchase agreement in early 2024 to power its Gladstone aluminum operations, through which Rio Tinto will purchase the majority of the electricity from the 1.4GW Bungaban wind power project. planned by Windlab, and an earlier agreement with European Energy to drive development of the 1.1 GW Upper Calliope Solar Park. 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 major economic driver, directly employing more than 4,500 people and supporting the livelihoods of thousands more people in Australia. The company’s Gladstone operations alone account for more than 3,000 jobs, 1,000 of them in BSL. Additionally, Rio Tinto’s bauxite operations in Weipa employ more than 1,300 people, supplying raw materials to the Gladstone manufacturing facility.
Rio Tinto also welcomes the announcement as the 51.55% owner of Tomago Aluminum Company and looks forward to working with the New South Wales Government to help secure the future of that operation. Tomago, in the Hunter Valley, is Australia’s largest aluminum smelter, directly supporting more than 1,200 full-time jobs.
View the source version on businesswire.com: https://www.businesswire.com/news/home/20250118099373/en/
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Category: BSL
Source: Rio Tinto