Rio Tinto has announced plans to wind back production at the Yarwun alumina refinery in Gladstone by 40 per cent from October 2026.

Scaling back production would affect about 180 roles at the refinery and the company said redeployment planning was underway as a priority.

With Yarwun’s tailings facility expected to reach capacity by 2031 at current production rates, the reduced rate would extend the operation’s life until 2035. This would allow time to explore further life-extension and modernisation options, the company said.

“While we have extensively explored options to develop a second tailings facility for Yarwun over a number of years, the scale of investment required is substantial and not currently economically viable,” Rio Tinto Aluminium Pacific Operations managing director Armando Torres said.

“Reducing production from October 2026 enables us to continue alumina production until 2035 and trial pathways to secure the longer-term future of Yarwun.

“We are committed to our alumina and aluminium operations in Gladstone and will work closely with employees, contractors and suppliers to manage this transition.

“It is a difficult but necessary decision that preserves future options for the site and supports continued economic contribution.”

Yarwun currently employs about 725 people and produces about 3 million tonnes of alumina per year, used as a feedstock for Rio Tinto aluminium smelters and international customers.

The decision to scale down will reduce annual alumina production by about 1.2 million tonnes.

The company said there would be no impact to customer requirements or Rio Tinto’s other operations, with bauxite mines and aluminium smelters continuing to operate at full capacity.

Rio Tinto said it would continue to focus on innovative tailings solutions at the operation, including neutralisation and centrifuge-based dry tailings.

It will also continue to prioritise decarbonisation technologies, such as replacing coal and gas in boilers with biofuels and delivering the hydrogen calcination project, a world-first initiative supported by Australian Renewable Energy Agency (ARENA) funding.

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