Rio Tinto $RIO (+0,52 %)
$RIO (+1,42 %) wants to reduce production at its Yarwun alumina refinery in the Australian state of Queensland by 40 percent in order to gain time to find a new long-term solution for the waste generated there in the production of aluminum oxide.
Production at the refinery will be reduced from October 2026, reducing annual alumina production by around 1.2 million tons, the mining group announced.
Around 180 of the current 725 employees will lose their jobs. Around 3 million tons of aluminium oxide are currently produced at the site each year. This supplies Rio Tinto's aluminum smelters and customers all over the world.
At current production rates, the Yarwun tailings facility, where the waste from the refinery process is stored, is expected to reach its capacity limit by 2031. However, the Group has not yet found an alternative solution. By cutting production, Rio Tinto will be able to maintain operations at Yarwun until 2035 while it looks for alternatives.
These could include "innovative solutions for the overburden", such as the use of centrifuges to produce dry overburden, according to the mining company.
Rio Tinto has been supplying alumina from Yarwun since 2004 and expanded the operation in 2012 to double production.