Rio Tinto Secures Deal to Keep Australia's Second Largest Aluminum Smelter Open

By David Winning

SYDNEY--Rio Tinto said it had reached a deal with lawmakers to keep open its Boyne aluminum smelter in eastern Australia, seeking to insulate the operation from rising prices of fossil fuels by leaning more heavily on renewable power.

Rio Tinto said the agreement with the Queensland state government and the federal government builds on power purchase agreements it has signed in recent years to underwrite 7.5 billion Australian dollars (US$5.25 billion) in new renewable energy and storage in the state.

The Queensland and federal governments have agreed to invest a combined A$2 billion over the ten years through 2040, seeking to support the Boyne smelter's transition to new power supply once its current electricity contract ends in 2029.

Boyne is Australia's second largest aluminum smelter and has been in operation since 1982. It is majority owned by Rio Tinto and employs 1,000 people.

"As fossil fuels become increasingly expensive, this investment, combined with the power purchase agreements we have already signed, positions Boyne to be among the world's first aluminum smelters underpinned by solar and wind power," said Jérôme Pécresse, head of Rio Tinto's aluminum and lithium business.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

March 24, 2026 17:27 ET (21:27 GMT)