Rio Tinto plans to reduce output at its Yarwun alumina refinery in Queensland by 40%, equivalent to about 1.2 million tonnes per year, effective October 2026. This decision aims to extend the plant’s operational life to 2035 while ensuring customer supply commitments remain unaffected, according to Armando Torres, managing director of Rio Tinto Aluminium Pacific Operations.
The reduction stems from ongoing challenges, including high power, labor, and capital costs in alumina processing, compounded by increasing low-cost supply from regions like Indonesia and China. Notably, Rio’s cut represents only 1% of the global alumina market, which is around 140 million tonnes. Approximately 180 of the 725 jobs at the refinery are expected to be impacted, although bauxite mines and aluminium smelters will continue operating at full capacity.
The company plans to utilize this output reduction period to explore various tailings-management options, aiming for a sustainable solution that may allow the refinery to operate beyond 2035, contingent on favorable market conditions.
