SYDNEY, March 25 (Xinhua) -- The Australian government on Wednesday announced a taxpayer-funded bailout for a major Rio Tinto-owned aluminum smelter in the state of Queensland.
The federal and Queensland governments on Wednesday committed a combined 2 billion Australian dollars (1.4 billion U.S. dollars) over 10 years to subsidize the operation of the Boyne aluminum smelter through to 2040.
Under the terms of the deal, Rio Tinto will underwrite 7.5 billion Australian dollars (5.2 billion U.S. dollars) in new renewable energy generation and storage projects in Queensland.
"This is the biggest industrial investment decision in Queensland's history," Tim Ayres, Australia's minister for industry and innovation, told reporters.
Located near the city of Gladstone, 430 km north of the Queensland capital of Brisbane, the Boyne facility is Australia's second-largest aluminium smelter, with an annual production capacity of around 545,000 tonnes.
Ayres said that the government support would secure 3,000 jobs in the region, help build Australia's economic resilience and push electricity prices down.
It is the fourth bailout of a metals processor announced by the federal government since the start of 2025.
The CEO of Rio Tinto, Jérôme Pécresse, said in a statement that the "transformative partnership" would ensure that the smelter remains internationally competitive. ■
