Rio Tinto says wind and solar make economic sense, LNP stands in way of its plans to save smelters
The head of mining giant Rio Tinto has once again underlined his company’s commitment to renewables.
But questions remain about the future of its giant smelters and refineries in Queensland after the new LNP state government put a halt to new wind farm approvals.
The decision by the Queensland LNP puts a pause on the approvals of four major wind projects in the state.
That includes the 1.4 GW Bungapan wind project that is essential to Rio’s plans to wean its energy intensive industries off its dependence on coal.
The decision by the Queensland LNP has rattled many in the energy industry.
The state has the lowest share of renewables of any in the country, a situation that would have been unchanged even with Labor’s target of 80% renewables by 2030.
Rio Tinto CEO Jakob Stausholm has spoken out, saying that his company's investment in renewables makes economic sense.
Stausholm’s comments are consistent with others, including Australia’s chief scientist, the head of US energy giant NextEra, and Andrew Forrest.
Forrest’s goal of reaching “real zero” at his Australian iron ore mining operations by 2030 has not been mimicked by his rivals, but it has prompted the likes of Rio Tinto and BHP to accelerate their plans.
As Stausholm acknowledges, Rio Tinto’s future relies on its ability to deliver low carbon or zero carbon products to its domestic and international customers.
If the LNP government stands in the way of that transition, there is no likely future for the company's assets there, which include the Boyne aluminium smelter, the Yarwun alumina refinery, and Queensland Alumina refinery.