Mining giant Rio Tinto announced it will acquire Mitsubishi Corp’s 11.65% stake in Boyne Smelters (BSL), enhancing its control over the Boyne Island aluminium smelter in Gladstone, Australia. This move follows Rio’s recent agreement to purchase Sumitomo Chemical’s 2.46% interest in BSL, raising Rio’s stake to 73.5%. The Boyne Smelters is a joint venture also involving YKK Aluminium and other partners. Rio Tinto is committed to securing a competitive low-carbon future for its Gladstone operations, with the acquisition set to be completed in the second half of 2024.
For Mitsubishi, the sale aligns with a strategic reshuffle of its aluminium portfolio. Although the Japanese trading house will no longer hold stakes in aluminium smelters, it will continue to engage in the aluminium sector through trading and investment in bauxite assets, which are critical for lightweight automobile manufacturing. The financial impact of this sale on Mitsubishi’s annual earnings forecast will be limited and is expected to be recorded in the July-September quarter. Mitsubishi’s aluminium strategy has been shifting, evidenced by its 2021 agreement to acquire 30% of the Aurukun bauxite project in Australia from Glencore.