Australia announces $1.4 billion in support for Rio's Boyne Aluminium Smelter

Australia announced a?A$2 Billion ($1.40 Billion) over ten years to support Rio Tinto's Boyne Smelters, the country's second largest aluminium smelter.

Federal Industry Minister Tim Ayres stated that the investment will be equally funded by both the federal government and Queensland's state governments. Rio Tinto will underwrite investment in energy assets.

Rio Tinto announced in a separate press release that the initiative will help the Anglo Australian miner reduce emissions and maintain its competitiveness amid rising fossil fuel prices.

The agreement ensures that Boyne Smelters Limited - in which Rio Tinto has a majority stake - will continue to produce aluminium beyond the expiration of its current power contract in 2029, and at least through 2040.

The metals industry in Australia has been under pressure due to high energy and labour costs. Governments announced financial assistance?for a number of?facilities?last year.

Rio Tinto also agreed to accept 40% of the output from Lightsource bp’s Lower Wonga Solar and?Battery Project, which is equivalent to 112 Megawatts of solar power. This brings its contracted renewable energy capacity in Queensland to more than 2.8 gigawatts.

(source: Reuters)