The Queensland Government says a $2 billion investment with the Albanese Government and Rio Tinto will support the future of Australian aluminium manufacturing, with a focus on sustaining smelting operations and jobs in Central Queensland.
Under the agreement, the Commonwealth and Queensland governments will each contribute $1 billion over ten years to help keep Australia’s second-largest aluminium smelter operating, while Rio Tinto will underwrite close to $7.5 billion in energy generation and transmission infrastructure to support long-term production at the Boyne facility.
The investment is also expected to support broader industrial development, with Rio Tinto underwriting close to $7.5 billion in new energy generation and transmission infrastructure to sustain long-term smelting operations at the Boyne facility.
The Queensland Government said the agreement is intended to “transform Queensland’s energy grid and secure the future of aluminium smelting in Central Queensland.”
Minister for Industry and Innovation Tim Ayres described the announcement as aligned with national industry policy, stating, “[The] announcement is exactly what Future Made in Australia is all about – governments stepping up to partner with industry and unlock the enormous industrial potential of our regions.”
He added that public funding would help drive significantly larger private investment, saying, “With a considerable public investment, we are catalysing a fivefold private investment that will build out the renewable energy grid and keep thousands of good regional jobs in Central Queensland.”
Queensland Minister for Manufacturing Dale Last said the initiative was aimed at securing long-term industrial activity and employment, stating, “Our partnership with the Australian Government and Rio Tinto will secure the long-term future of the Boyne Smelter and the thousands of jobs it supports across Queensland.”
He also pointed to global pressures on supply chains, noting, “At a time when supply chain disruptions are being felt across the globe, this investment is needed now more than ever to safeguard Queensland’s sovereign manufacturing capabilities, and to build national resilience and international competitiveness.”
The Queensland Government emphasised that aluminium remains a key industrial material used across sectors including construction, transport, packaging and energy infrastructure, and highlighted Australia’s position as one of the few countries with a complete onshore aluminium supply chain, from bauxite mining to finished products.
The Boyne aluminium smelter supports around 1,000 direct jobs and an additional 2,000 indirect roles in Gladstone, underscoring the project’s economic significance to the region.
