Rio Tinto unveils $427m carbon-free aluminium JV with Quebec govt
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The news: Rio Tinto has announced plans to install carbon-free aluminium smelting cells at its Arvida smelter in Canada, as part of a USD285 million ($427 million) co-investment with the Government of Quebec.
The numbers: The mining and metals major said it will design, engineer and build a demonstration plant, with the aim of producing up to 2,500 tonnes of commercial quality aluminium per year without direct greenhouse gas emissions, and first production targeted by 2027.
The plant will be owned by a new joint venture in which Rio Tinto and the Government of Quebec, though Investissement Quebec, will invest USD179 million ($268 million) and USD106 million respectively as equity partners, for a total investment of USD285 million.
The context: The ASX- and LSE- listed company said the agreement marks the first technology licence issued by the ELYSIS — Rio Tinto's joint venture with Pittsburgh-based aluminium producer Alcoa.
Alcoa will have the option to purchase a portion of the aluminium produced over the first four years at the Arvida demonstration plant through an offtake agreement.
Rio Tinto said the facility's pilot operation will be a "critical step" in the company's learning journey towards full-scale industrialisation of the ELYSIS technology.
What they said: Rio Tinto's aluminium chief executive Jérôme Pécresse said: "This investment will further strengthen Rio Tinto's industry-leading position in low-carbon, responsible aluminium in North America with our hydro-powered smelters and our recycling capacity".
"Becoming the first to deploy the ELYSIS carbon-free smelting technology is the next step in our strategy to decarbonize and grow our Canadian aluminium operations," he said.
The source: ASX announcement
