Rio Tinto plans to cut alumina production at its Yarwun refinery in Queensland by 40 percent due to concerns about the facility's long-term viability. The reduction will take effect in October 2026, allowing the refinery to continue operations until 2035.

The company stated that the current production levels at the Yarwun tailings facility are projected to reach capacity by 2031. The planned cut will decrease annual alumina production by approximately 1.2 million tonnes and will affect around 180 jobs at the site.

Rio Tinto is currently working on redeployment plans for affected employees across its operations in Gladstone. Armando Torres, managing director of Rio Tinto's aluminium Pacific operations, explained that the company explored the possibility of developing a second tailings facility at Yarwun but found it to be economically unfeasible.

"Reducing production from October 2026 enables us to continue alumina production until 2035 and trial pathways to secure the longer-term future of Yarwun," Torres said. He acknowledged that this decision was difficult but necessary to preserve future options for the site and maintain its economic contributions.

The Yarwun refinery currently employs about 725 people and produces around 3 million tonnes of alumina annually. Alumina serves as a key feedstock in aluminium smelters and has various industrial applications. This announcement follows Rio Tinto's recent indication that it might close the Gladstone Power Station six years earlier than planned.