(Reuters) -Australia's Rio Tinto said on Tuesday it will cut output at its Yarwun alumina refinery in Queensland by 40% from October next year to extend the plant's life to 2035 and allow time for modernization plans.

The decision comes as Yarwun's tailings facility, used to store waste from mining, is expected to approach full capacity by 2031 under current production rates.

The company had explored options for a second tailings facility, but the investment required was "substantial and not currently economically viable," it said.

Around 180 roles will be affected by the scale-back, Rio Tinto said, adding that it is actively working to relocate or reassign impacted employees. The refinery currently employs about 725 people, according to the company.

The production cut will reduce annual alumina output by about 1.2 million metric tonnes, the company said, but added that customer requirements will not be impacted. The company reported 7.3 million tonnes of alumina output in the year 2024.

Rio Tinto's bauxite mines and aluminium smelters will continue to operate at full capacity, it added.