Rio Tinto to Cut Yarwun Alumina Output by 40% to Extend Refinery Life

Anglo-Australian mining giant Rio Tinto has announced plans to reduce production at its Yarwun alumina refinery in Queensland by 40% starting October next year. The move aims to extend the refinery’s operational life amid rising costs, industry pressure, and challenges tied to waste management.

According to the company, years of assessment showed that constructing a second waste facility at Yarwun would require a major financial commitment that is not viable under current market conditions. By scaling back output, Rio Tinto expects to extend the refinery’s life to 2035, as the reduction will slow the accumulation of waste. The current tailings facilities are projected to reach capacity in 2031, and the extension gives the company additional time to explore long-term solutions that could prolong the refinery’s future beyond that point.

This decision comes at a time when Rio Tinto’s aluminium division in Australia and New Zealand is under pressure due to alumina prices hitting two-year lows. Combined with high power and labour costs, profit margins have been squeezed across the sector. The restructuring initiated by new CEO Simon Trott in August also reflects an effort to prioritize the company’s strongest-performing assets.

Armando Torres, Managing Director of Rio Tinto Aluminium Pacific Operations, noted that while the company thoroughly evaluated options for a second tailings facility, the scale and cost made it unfeasible. Analysts say the production cut aligns with a broader trend of declining metals processing activity in Australia due to increasing operating costs. The reduction will remove roughly 3% of alumina from the ex-China market, or about 1.2 million metric tons annually. Despite this, Rio Tinto emphasized that customer supply commitments will not be affected.

The cutback will impact approximately 180 roles from Yarwun’s workforce of about 725 employees. Meanwhile, the company’s bauxite mines and aluminium smelters, including its stake in the Tomago smelter—currently under review—will continue operating at full capacity.