CITY OF MELBOURNE (dpa-AFX) - Rio Tinto (RIO. RIO.L,RIO1.DE,RIO.AX), the Queensland Government, and the Commonwealth Government have entered into a partnership to secure the long-term future of the Boyne aluminium smelter in Gladstone, ensuring it remains internationally cost-competitive beyond its current power contract.
The agreement builds on Rio Tinto's recent power purchase agreements (PPAs), which have underwritten A$7.5 billion in new renewable energy and storage projects across Queensland. Under the new deal, the Queensland and Commonwealth Governments will jointly invest A$2 billion over 10 years to 2040. This finalizes the terms of a previously announced partnership between Queensland and Rio Tinto and forms part of the Federal Government's Future Made in Australia initiative.
The partnership supports the transition to long-term competitive power for the smelter and secures manufacturing jobs in Central Queensland. It ensures Boyne Smelters Limited, majority-owned by Rio Tinto, will continue aluminium production beyond the expiry of its current power contract in 2029, extending operations through at least 2040.
RIO.AX was trading at A$150.12, reflecting an increase of A$2.56 or 1.73%.
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