Rio pulls back with BSL on track

The Boyne Smelter.
The Boyne Smelter.

RIO Tinto’s declared force majeure for aluminium supplies from the Boyne Smelter (BSL) plant due to severe flooding still applies as some customers are still recieving deliveries, a Rio Tinto spokesperson told The Observer.

“As floodwaters fell away and roads reopened late last week we recommenced road deliveries to some domestic customers,” the Rio spokesperson said.

“The majority of our product for overseas customers is transported through the Gladstone Port and there have been no delays in these shipments.

Queensland was declared a disaster zone after 75 per cent of the state was affected by flooding.

Force majeure is a legal clause that allows a company to miss deliveries because of circumstances beyond its control.

Rio’s coal unit on December 29 declared force majeure on sales contracts from mines in Queensland because of the flooding.

“Some of our value-added product is exported to overseas customers through the Port of Brisbane, which is progressively returning to normal operations following the floods,” the Rio spokesperson said.

Rio tinto was unable to provide an estimate on the full impact of the disruption or the duration of the declaration.

“We will continue to monitor the weather, but essentially there has been minimal impact on BSL.”

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