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Building a More Sustainable Future: Capral, Sims Metal and Rio Tinto Launch Closed-Loop Aluminium Recycling

Capral, Sims Metal, and Rio Tinto are proud to be advancing a more sustainable future for Australian aluminium through a new closed-loop recycling initiative. In this collaborative process, post-production aluminium scrap from Capral is sorted and processed by SIMS Metal and remelted at Rio Tinto’s Boyne Smelter (BSL), creating a domestic circular supply chain. The result: 1,000 tonnes of aluminium with a minimum 20% recycled content, returned to Capral for use in local extrusion operations. A great step forward in building a greener, more resilient onshore manufacturing industry.

 

This latest development builds upon a successful trial conducted in 2024, marking growing momentum toward more circular and lower-carbon aluminium production in Australia. In that trial, Capral partnered with Boyne Smelter to trial recycled-content aluminium billet produced from 100 tonnes of post-production scrap sourced from Capral’s Bremer Park extrusion plant in Southeast Queensland. That scrap was remelted and cast into billet with a minimum of 20% recycled content, demonstrating that high-quality, recycled-content billet can be made reliably onshore, paving the way for broader adoption.

 

Building on that success, Capral will now supply post-production aluminium scrap from its operations to Sims Metal for processing and sorting before the aluminium makes its way to Boyne Smelter. BSL will remelt the scrap to produce 1,000 tonnes of primary aluminium billet containing at least 20% recycled content,  which will be supplied back to Capral for use in its extrusion operations.

 

Sims Metal plays a critical role in this process, ensuring aluminium scrap is properly processed and sorted for remelting. Their involvement helps guarantee the consistency and quality required for closed-loop recycling at scale. David Burrows, Chief Commercial Officer, Sims Metal, said: “Sims Metal is excited to collaborate with Rio Tinto and Capral to provide more recycled metal content into domestic aluminium manufacturing. Using more recycled aluminium in the manufacturing process is an immediate way the industry can continue to decarbonise and at the same time strengthen local aluminium supply chains.” 

 

This closed-loop approach is unique in its fully localised footprint. The aluminium has a Queensland origin at every stage in the value chain—from bauxite mining and alumina refining to smelting, extrusion, and now remelting for its next life. Keeping this cycle local not only reduces emissions linked to transportation and logistics but also strengthens the resilience and capability of Queensland’s manufacturing supply chain.

 

Energy efficiency is at the heart of this initiative. Producing primary aluminium is energy-intensive, especially at the smelting stage. However, remelting aluminium scrap requires just about 5% of the energy compared to primary production. This makes recycling aluminium through remelting one of the most effective ways to reduce the environmental impact of aluminium products without sacrificing performance or quality.

 

For Capral, this partnership is an important part of their sustainability strategy. Tony Dragicevich, Capral Managing Director and CEO explains: “This project represents a practical step forward for Capral in reducing our carbon emissions and increasing the recycled content of the aluminium we use. Building on our successful 2024 trial with Rio Tinto, working together enables us to offer our customers extruded aluminium options that support circularity, strengthen local supply chains, and reinforce the role of Australian manufacturing in a low-carbon future.”

 

Collaboration is key to advancing efforts to scale up closed-loop aluminium recycling domestically. Armando Torres, Rio Tinto Pacific Operations Aluminium Managing Director, comments, We are pleased to collaborate with SIMS Metal and Capral to pioneer and scale an onshore closed-loop aluminium recycling solution that is driven by the needs of the market and our customer, Capral. The advancements achieved through successful trials are testament to the partnering technical teams’ innovation, and demonstrate the feasibility of locally sourced and recycled aluminium supply chains in Australia.”

 

The success of this initiative also aligns with Capral’s commitment to being an Aluminium Stewardship Initiative (ASI) certified manufacturer, ensuring environmental stewardship, supply chain transparency, and responsible production are at the core of its operations.

 

Aluminium’s unique recyclability is a key enabler for sustainable manufacturing. Unlike many materials, it retains its strength and properties indefinitely, allowing it to be remelted and reused countless times with minimal energy input compared to primary production. With projects like this, Capral and Rio Tinto are paving the way for a circular aluminium economy in Australia—one that supports emissions reduction, material efficiency, and local manufacturing resilience.

 

As the industry looks ahead to the challenges of decarbonisation and resource optimisation, this partnership offers a practical blueprint for how collaboration and innovation can turn waste into value and drive meaningful progress toward a sustainable future.