Rio Tinto cuts alumina output in Australia

Rio Tinto (NYSE, LSE, ASX: RIO) intends to downsize outcome at its Yarwun alumina refinery in Queensland by 40% beginning in October 2026 to expand the plant’s operating life to 2035.

The decrease totals up to concerning 1.2 million tonnes of alumina a year, though the business claimed Tuesday consumer supply dedications will certainly not be influenced.

” It is a tough yet needed choice that protects future alternatives for the website and sustains ongoing financial payment,” Armando Torres, handling supervisor of Rio Tinto Aluminium Pacific Workflow, claimed in the launch. “The range of financial investment called for is significant.”

High power, work and resources expenses remain to test alumina handling in Australia, while climbing inexpensive supply from Indonesia and China is pushing margins. Costs go to much less than half the spike to $800 per tonne in 2015 and Rio’s plant cut is simply 1% of the worldwide alumina market of concerning 140 million tonnes, according to BMO Resources Markets.

Oriental supply

” With China and various other components of Asia increase residential capability, alumina rates have actually been under constant descending stress with the majority of 2025,” BMO Resources Markets claimed in a note on Tuesday.

” CRU’s Atlantic Basis Consumer price index was examined at $340 per tonne recently, near to its current low of $334 per tonne in mid-October,” BMO’s experts claimed.

Rio’s cut is driven by tailings-storage restrictions at the refinery in Gladstone, the miner claimed. Yarwun’s existing plant is anticipated to get to capability by 2031 at present manufacturing prices. The price of constructing a 2nd tailings location isn’t sensible in the present market, it claimed.

Reduced outcome provides Rio Tinto an extra 4 years to maintain the refinery running while it assesses alternate technological services. It’s currently examined just how to enhance the website design for numerous years, it included, yet discovered the dimension and intricacy called for economically intimidating.

180 work

Rio Tinto claimed the decrease at Yarwun will certainly not impact its bauxite mines or aluminium smelters, which will certainly proceed running at complete capability. Regarding 180 of the refinery’s 725 work are anticipated to be affected as soon as the shift starts.

The business intends to utilize the moment developed by the outcome decrease to examine a variety of tailings-management alternatives targeted at pressing even more life out of the existing storage space impact.

This consists of changing deposition patterns, enhancing compaction and drying out performances, and examining whether improved deposit piling innovations or alternate waste-handling setups might securely enhance control capability.

The tests are meant to confirm practically and ecologically appropriate paths that might sustain the refinery past 2035 if market problems validate additional financial investment.