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Rio Tinto welcomes Australian Government support for low-carbon aluminium

1. Rio Tinto supports Australian aluminum production credit for smelters. 2. The initiative aims to transition to renewable energy before 2036. 3. The credit boosts local aluminum industry and job security. 4. It aligns with growing global demand for low-carbon materials. 5. Rio Tinto is a major player in regional economic development.

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Why Bullish?

The production credit enhances Rio Tinto's competitiveness in a growing market for low-carbon products, similar to past boosts from green initiatives.

How important is it?

The article directly relates to Rio Tinto's operations and market strategies, impacting its long-term positioning.

Why Long Term?

The support promotes structural improvements in the aluminum sector, with long-term benefits like job creation and sustainable production.

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RIOBSLTAL
MELBOURNE, Australia--(BUSINESS WIRE)--Rio Tinto welcomes the Australian Government's announcement of an aluminium production credit to help sustain and grow aluminium smelting in Australia, and significantly advance both regional communities and the nation's manufacturing capabilities. The production credit, announced today as part of the Future Made in Australia Plan, puts Australia on a path to becoming a leader in green metals manufacturing, while supporting a continued strong economic future for communities that have powered the nation's aluminium industry for generations. It will provide targeted support to Australian aluminium smelters transitioning to reliable, renewable electricity before 2036. Under the initiative, facilities will be eligible for support for their production over a 10-year period. The credit aims to give local aluminium smelters the confidence to invest, securing Australian jobs and strengthening the nation's world-class aluminium industry. The support comes at a pivotal time for Australia's aluminium sector, as major manufacturers and infrastructure developers worldwide increasingly seek supply of low-carbon material, driving growing demand for sustainably produced products. Rio Tinto Chief Executive, Australia, 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 heavy industry become increasingly uncompetitive, today’s announcement is a critical piece in helping future-proof the industry. Such support is crucial for 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 aluminium needed for the global energy transition, creating a foundation for local businesses and manufacturing to thrive." The announcement builds on Rio Tinto's partnership with the Queensland Government, announced in August 2024, to support Boyne Smelters Ltd’s (BSL’s) transition to renewable energy, as well as Rio Tinto's strong progress in securing renewable power to provide competitively priced electricity for its aluminium operations. This includes signing Australia's largest renewable power purchase agreement in early 2024 to supply its Gladstone aluminium operations, whereby Rio Tinto will purchase the majority of electricity from Windlab's planned 1.4GW Bungaban wind energy project, and an earlier agreement with European Energy to drive development of the 1.1GW Upper Calliope solar farm. These projects will make Rio Tinto the biggest industrial buyer of renewable power in Australia. Rio Tinto's integrated aluminium production chain in Queensland is a significant economic driver, employing over 4500 people directly and supporting thousands more Australian livelihoods. The company's operations in Gladstone alone account for more than 3000 jobs, with 1000 of those at BSL. Additionally, Rio Tinto's bauxite operations in Weipa employ more than 1300 people, supplying raw materials to the Gladstone manufacturing facilities. Rio Tinto also welcomes the announcement as a 51.55% owner of Tomago Aluminium 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 aluminium smelter, and directly supports more than 1200 full-time jobs.

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