Mining giant Rio Tinto has announced that it will purchase Mitsubishi Corporation’s 11.65% stake in Boyne Smelters (BSL), a joint venture that owns and operates the Boyne Island aluminum smelter in Gladstone, Australia. The financial details of the transaction were not disclosed.
This acquisition follows Rio Tinto’s recent deal to buy Sumitomo Chemical’s 2.46% interest in the Boyne Smelters joint venture. With the completion of these transactions, Rio Tinto’s interest in Boyne Smelters will increase to 73.5%, further solidifying its position in the venture.
In a statement, Rio Tinto said it “looks forward to continuing to work with its remaining BSL joint venture partners and other stakeholders on securing a competitive low-carbon future for its Gladstone operations.” The acquisition is set to be finalized in the second half of 2024.
For Mitsubishi, the sale is part of a broader restructuring of its aluminum portfolio. A company spokesperson stated that the financial impact on Mitsubishi’s annual earnings forecast will be limited, as the Japanese trading house will no longer hold stakes in any aluminum smelter. However, Mitsubishi will remain active in the aluminum business, including trading and investment in bauxite assets, as the metal’s growth potential is seen in lightweight automobiles to achieve greater efficiency.
In 2021, Mitsubishi had agreed to acquire a 30% stake in the Aurukun bauxite project in Australia from Glencore, further strengthening its presence in the aluminum supply chain.
The acquisition of Mitsubishi’s stake in Boyne Smelters aligns with Rio Tinto’s strategy to consolidate its position in key assets and secure a sustainable, low-carbon future for its aluminum operations in Gladstone, Australia.