Queensland Government to Subsidise Struggling Smelter Amid Net Zero Transition

The Queensland government has agreed to partner with mining giant Rio Tinto to support the transition of its Boyne aluminium smelter in the industrial city of Gladstone as it transitions to using renewable energy from 2029. It will provide economic support through its “Energy and Jobs Plan.” It has not been disclosed how much it will cost Queenslanders, but it is likely to be in the form of subsidised energy costs for the smelter, which is a major electricity user. Rio Tinto completely wrote off the smelter’s value last year, blaming high energy costs. In 2020, its then-CEO Jean-Sebastien Jacques warned that Australian smelters such as Boyne were on “thin ice” due to high electricity costs and low aluminium prices....