Cost question remains after Qld deal with Rio Tinto over Boyne Smelter in Gladstone

Australia’s second-largest aluminium smelter will continue operating after the Queensland government struck a deal with mining giant Rio Tinto to invest in a greener energy supply.

But Opposition government integrity spokeswoman Fiona Simpson slammed the premier for not revealing the price tag of the package to keep the Boyne Smelter in Gladstone operational long-term.

“Transparency drives better government and better decisions and that is not happening under Steven Miles,” she told News Corp Australia on Friday.

“Nothing has changed because once again Labor is hiding behind commercial in confidence arrangements instead of telling taxpayers exactly how their money is being spent.”

The Boyne Smelter, Australia’s second-largest aluminium producer, employs around 1000 people and has been open since 1982.

It manufactures carbon anodes and aluminium and casts molten metal into aluminium products for export.

Under the deal, Rio Tinto is required to operate the smelter at full capacity from 2029 until 2040 and commit to ongoing maintenance capital expenditure, meet employment requirements and shift to renewable energy sources.

The mining giant has also committed to invest in demand response capabilities so the smelter can be called on to reduce its electricity demand at times of tight supply.

This is expected to reduce pressure on the national grid and wholesale energy prices.

“If the Boyne Smelter was to close, it would be like what we saw in Townsville when Queensland Nickel closed, remember the devastation?” Premier Steven Miles told reporters on Thursday.

“We don’t want to see that and that’s why the agreement we’ve signed with Rio Tinto secures the future of the Boyne Smelter.”

Rio Tinto chief executive Australia Kellie Parker welcomed the deal as a significant partnership in the history of the state.

“This agreement is more than just a business deal, it’s a blueprint for how the industry and government can work together to navigate challenges of the clean energy transition,” she said.

When asked what the cost of the deal was, Mr Miles did not say.

“We’ve always had long-term agreements with the smelter to provide them with power, and this really extends on those agreements out to 2040, they’ve always been commercial in confidence,” he said.

The Australian Conservation Foundation welcomed the transition to renewable energy while slamming the federal opposition’s proposed plan to introduce multiple nuclear energy sites instead of investing in green alternatives.

“The only way for energy-hungry aluminium refineries and smelters to survive is to find ways to power them with clean energy,” climate campaigner and Gladstone local Jaclyn McCosker said.

“Rio Tinto is moving to decarbonise and it’s doing it in a much cheaper and safer way than nuclear ever could.”