Rio Tinto to scale back Yarwun alumina output as it reassesses long-term waste strategy

Rio Tinto has confirmed it will significantly scale back production at its Yarwun alumina refinery in Gladstone, opting for a 40% cut from October 2026 as it works to extend the life of the facility and revisit its long-term waste management plan.

The refinery’s current tailings storage system is expected to reach full capacity by 2031. According to the company, building a second waste facility—an option it has studied for several years—would require a large capital commitment that no longer stacks up in the present market. By easing output, Rio Tinto expects Yarwun to remain operational until 2035, giving the business room to explore other technical and economic pathways.

Armando Torres, Managing Director of Rio Tinto Aluminium Pacific Operations, said the company had to “take a pragmatic approach” given the substantial investment required for a second tailings facility. “The numbers simply don’t support it right now,” he noted, emphasising that the decision came after years of analysis.

The announcement lands at a time when Australia’s metals processing sector is struggling against rising energy prices, labour costs and tight margins. Alumina prices have also slipped to two-year lows, placing further pressure on producers. Industry observers say Rio Tinto’s move reflects the broader challenges faced by operators across the region.

While the refinery will continue to meet customer commitments, annual alumina output will fall by about 1.2 million tonnes. Around 180 roles—out of a workforce of roughly 725—are expected to be affected. Rio Tinto’s bauxite mines and aluminium smelters, however, will continue running at full capacity.

The reduction follows restructuring efforts introduced by CEO Simon Trott earlier this year, aimed at sharpening the company’s focus on its strongest performing assets. It also comes as several smelters across the country require government support to keep operating, underlining ongoing pressure across the domestic metals sector.