Rio Tinto Inks Deal With Queensland State to Safeguard Australia's No. 2 Aluminum Smelter

By Rhiannon Hoyle

Miner Rio Tinto said Thursday it has signed an agreement with the government of Australia's Queensland state aimed at shoring up the long-term future of the country's second-largest aluminum smelter.

The Anglo-Australian mining company said the Queensland government has pledged to support the financial viability of its majority owned Boyne Smelters business in Gladstone from 2029, as the smelter shifts to renewable energy. The government will provide economic support via its Energy and Jobs Plan, the miner said in a statement, without providing further details.

Rio Tinto said it will invest in maintaining Boyne Smelters's annual production capacity of more than 500,000 metric tons. Rio Tinto also said it aims to expand its coastal shipping capacity with the addition of a fifth vessel to transport bauxite from the company's Gove and Weipa mines to operations in Gladstone.

The miner said in June it had agreed to buy Mitsubishi's nearly 12% stake in Boyne Smelters, taking Rio Tinto's interest in the business to almost 74%.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

August 14, 2024 21:41 ET (01:41 GMT)

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