en.Wedoany.com Report on Mar 25th, The company (ASX:RIO) has entered into a partnership agreement with the Queensland and Australian federal governments to secure the long-term operation of the Boyne Island aluminium smelter located in Gladstone. This agreement will ensure the smelter continues production until at least 2040 after the current contracts expire and enhance its cost competitiveness in the international market.

This new agreement involves a cumulative investment of $2 billion over ten years. It builds upon the existing partnership with the Queensland Government and forms part of the Australian Government's "Future Made in Australia" initiative. The agreement also supports $7.5 billion worth of new renewable energy and energy storage projects in the state, based on previously signed power purchase agreements, further securing the future of Queensland's aluminium smelting industry.

Jerome Pecresse, Chief Executive of Aluminium & Lithium, stated that this investment will improve the Boyne smelter's international competitiveness, support the development of Australia's aluminium industry, and advance the decarbonisation of Queensland's energy system. He said: "With rising fossil fuel costs, this investment, combined with our existing power purchase agreements, is expected to make the Boyne smelter one of the world's first aluminium smelters primarily powered by solar and wind energy."

Pecresse added: "This ensures that heavy manufacturing industries like aluminium smelting can continue in Gladstone for the long term and protects one of the few complete aluminium value chains in the world—from bauxite mining to alumina refining to aluminium smelting, all conducted within Queensland—while the energy transition drives sustained growth in aluminium demand."

Since January 2024, over 2.8 gigawatts of new renewable energy and over 600 megawatts of energy storage capacity have been contracted through five projects in Queensland, further supporting the region's sustainable energy development.