New York, March 27, 2026, 11:13 EDT
Rio Tinto plc shares, traded in New York, climbed 1.1% to $86.75 as of 10:58 a.m. EDT Friday. Investors reacted to news of a A$2 billion lifeline for the company’s Boyne aluminium smelter in Queensland, alongside a surge in benchmark Asian aluminium premiums. The stock advanced despite ongoing pressure across global equities.
It’s a pressing issue for Rio, which needs more reliable, lower-cost energy for its aluminium business, while shipping disruptions tied to war and surging oil prices ripple through commodities. Japan’s quarterly premium, the standard for pricing regional metal sales on top of London Metal Exchange cash, climbed sharply—immediately shifting expectations on what Rio might fetch.
Queensland’s latest deal will see both the Commonwealth and state governments commit A$1 billion each over a decade, while Rio signs on to back nearly A$7.5 billion in fresh renewables and transmission buildout. According to Rio, this support is expected to keep the Boyne smelter—Australia’s No. 2 for aluminium—operational beyond the end of its current power agreement in 2029, stretching at least through 2040. About 1,000 jobs at the site, plus another 2,000 around Gladstone, are on the line.
Jérôme Pécresse, who heads up Rio’s aluminium and lithium division, described the deal as a “transformative partnership,” saying it could see Boyne become one of the first smelters powered by wind and solar. Rio Tinto Pacific Operations boss Armando Torres also told reporters the site’s future is now secure through at least 2040. Rio Tinto
Timing’s on their side. Japanese buyers just locked in an aluminium premium of $350 to $353 per metric ton for April to June shipments—a jump of 79% to 81% from the previous quarter, and, notably, the steepest price since 2015. The upswing comes after turmoil in the Middle East squeezed supply and disrupted cargoes moving through the Strait of Hormuz. Rio and South32, according to Reuters, were among the producers at the negotiating table.
Rio sent another investment message this Friday. The company reported that spending with Western Australian suppliers will hit a record A$12.1 billion in 2025—up A$1.8 billion from the previous year—as it pushes ahead with new replacement mines in the Pilbara. Western Range has started up, while construction continues at Brockman Syncline 1, Hope Downs 2, and West Angelas. Iron ore boss Matthew Holcz said Rio is still “committed” to working with local businesses. Rio Tinto
Rio moved up, but other miners kept pace. BHP’s New York shares added 1.9%, Vale picked up 1.6% as well, while global equities slipped again and Brent crude hovered close to $110.70 a barrel.
Yet the footing looks uncertain. “Words alone aren’t cutting it” for markets, Hargreaves Lansdown analyst Matt Britzman said Friday. The very oil shock pushing up aluminium premiums is also stoking inflation fears and anxiety over borrowing costs. Reuters
Rio faces its own execution hurdles. Katie Jackson, who oversees copper, told Reuters this week the company is still aiming to get its Resolution project in Arizona up and running sometime in the early-to-mid 2030s. But she flagged a big snag: “the current structures don’t support the Kennecott smelter,” a blunt reminder that processing concentrate into finished metal in the U.S. is still a major challenge. Reuters
Rio’s Friday climb masks a patchwork underneath—aluminium prices have picked up, power supply in Queensland looks more solid, and then there’s copper. That expansion still hinges on whether Rio can squeeze more out of harder processing economics.
