Rio Tinto to Cut Yarwun Alumina Output by 40% from October 2026

On November 18th, Rio Tinto announced it will reduce alumina production at its Yarwun refinery in Queensland by 40% starting in October 2026, a move aimed at extending the plant’s operating life to 2035. The company said constructing a second tailings facility would require a level of investment that is currently not economically viable.

The scale-back will trim roughly 1.2 Mt of annual alumina output—about 3% of ex-China supply—though Rio confirmed that customer deliveries will not be affected. The reduction will impact around 180 jobs at Yarwun, which employs approximately 725 people.

The decision comes amid persistently high energy and labour costs in Australia, while global alumina prices have fallen to two-year lows. Analysts note that rising Indonesian supply continues to pressure margins for Australian processors.

Rio’s bauxite mines and aluminium smelters will continue operating at full capacity. The company will determine whether to market excess bauxite from Weipa or reduce mine output once the cutback takes effect.