REG - Rio Tinto - Rio Tinto to expand low-carbon aluminium smelter

Rio TintoAnnouncement

12/06/2023 14:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230612:nRSL4376Ca&default-theme=true

RNS Number : 4376C  Rio Tinto PLC  12 June 2023

 

Notice to
ASX/LSE

 

Rio Tinto to expand its AP60 low-carbon aluminium smelter in Quebec

 

12 June 2023

 

SAGUENAY, Canada - Rio Tinto will invest $1.1 billion (CAN$1.4 billion) to
expand its state-of-the-art AP60 aluminium smelter equipped with low-carbon
technology at Complexe Jonquière in Canada. The total investment includes up
to $113 million (CAN$150 million) of financial support from the Quebec
government. This expansion, which will coincide with the gradual closure of
potrooms at the Arvida smelter on the same site, will enable Rio Tinto to
continue meeting customers' demand for low-carbon, high-quality aluminium for
use in transportation, construction, electrical and consumer goods.

 

The investment will add 96 new AP60 pots, increasing capacity by approximately
160,000 metric tonnes of primary aluminium per year, enough for 400,000
electric cars. As a result, there will be a total of 134 AP60 pots and a
capacity of approximately 220,000 tonnes per annum. Construction will run over
two and a half years, with commissioning of the new pots expected to start in
the first half of 2026 and the smelter fully ramped up by the end of 2026.
Once completed, the expanded smelter is expected to be in the first quartile
of the industry cost curve.

 

This new capacity will offset the 170,000 tonnes of capacity lost through the
gradual closure of potrooms at the Arvida smelter from 2024. In addition, Rio
Tinto will add 30,000 tonnes of new capacity through the commissioning of the
previously announced recycling facility at Arvida in the first quarter of
2025. These facilities will ensure Rio Tinto's casting facilities at Complexe
Jonquière continue to provide value added products that meet customers'
needs, including integrating recycled post-consumer aluminium into primary
aluminium alloys.

 

The AP60 smelting technology was developed by Rio Tinto's Research and
Development teams and is amongst the most efficient and lowest carbon
technology currently available at commercial scale. When combined with the
hydropower used at Rio Tinto's operations in Canada, it generates one seventh
of greenhouse gases per tonne of aluminium when compared with the industry
average, and half the emissions when compared to the technology currently used
at the Arvida smelter. 1 

 

The project will generate up to 1,000 jobs during the peak of construction and
approximately 100 permanent jobs will be maintained as a result of the
expanded smelter.

 

Rio Tinto Chief Executive Jakob Stausholm said: "This investment is aligned
with our strategy to decarbonise our value chains and grow in materials
essential for the energy transition. Our AP60 technology is already proven and
producing some of the lowest carbon aluminium in the world, thanks to the
expertise of our highly qualified workforce and access to renewable
hydropower. This is the most significant investment in our aluminium business
for more than a decade and it will further strengthen Rio Tinto's high-quality
and low-carbon offering to our customers as they also work to reduce their own
carbon footprint.

 

"I would like to thank both the Government of Canada and Government of Quebec
for their support in progressing this project. We are also continuing to work
together on the future implementation of the ELYSIS(TM) zero carbon smelting
technology at our Quebec facilities."

 

Quebec Premier François Legault said: "A great momentum is building in our
regions for our green economy. The aluminium industry in
Saguenay-Lac-Saint-Jean has always been a real source of pride and has created
considerable wealth in the region. Today's announcement will breathe new life
into this industry with greener, less polluting processes. The use of AP60
pots will halve GHG emissions in aluminium production. With the upcoming
ELYSIS(TM) technology, Quebec aims to become the world champion of green
aluminum."

 

The Honourable François-Philippe Champagne, Canada's Minister of Innovation,
Science and Industry, said: "Canada has all it takes to be the global green
supplier of choice. And that is why our government is collaborating with key
industry actors like Rio Tinto to produce the world's greenest aluminium. By
supporting the production of green metals, we ensure Canada will remain at the
forefront of the economy of tomorrow. When economic benefits are paired with a
commitment to developing green solutions, it's a win for our industry, our
cleantech ecosystem and our workers."

 

In addition to this investment in low-carbon aluminium, Rio Tinto is working
with the Governments of Canada and Quebec towards a deployment of the
ELYSIS(TM) zero carbon aluminium smelting technology at its
Saguenay-Lac-Saint-Jean facilities. With the current development pathway,
ELYSIS aims to have its technology available for installation from 2024 and
the production of larger volumes of carbon-free aluminium approximately two
years later.

 

Rio Tinto and the Government of Canada have also signed a Memorandum of
Understanding that deepens their commitment to strengthen supply chains for
low-carbon primary metals, critical minerals and other value-added products.
The cooperation will also aim to support projects that have the potential to
grow Rio Tinto's activities in Canada, including the current and future
decarbonisation of the aluminium supply chain.

 

The investment in the AP60 smelter is already included as replacement capital
expenditure in Rio Tinto's capital investment guidance for 2023 to 2025. The
Group's capital expenditure guidance of $9 billion to $10 billion in both
2024 and 2025 remains unchanged.

 

Note to editors

Photos and videos of the existing AP60 aluminium smelter at Complexe
Jonquière can be downloaded using this link: https://we.tl/t-Mub5RYH7Co
(https://we.tl/t-Mub5RYH7Co)

 

 

Contacts

 

 

 

 Media Relations,        Media Relations,               Media Relations,
 United Kingdom          Australia                      Americas

 
 
 

 Matthew Klar            Matt Chambers                  Simon Letendre

 M +44 7796 630 637      M +61 433 525 739              M +1 514 796 4973

 David Outhwaite         Jesse Riseborough              Malika Cherry

 M +44 7787 597 493      M +61 436 653 412              M +1 418 592 7293

                         Alyesha Anderson

                         M +61 434 868 118

 Investor Relations,     Investor Relations,
 United Kingdom          Australia

 
 

 Menno Sanderse          Tom Gallop

 M +44 7825 195 178      M +61 439 353 948

 David Ovington          Amar Jambaa

 M +44 7920 010 978      M +61 472 865 948

 Danielle Smith

 M +44 7788 190 672

 Rio Tinto plc           Rio Tinto Limited

 
 

 6 St James's Square     Level 43, 120 Collins Street

 London SW1Y 4AD         Melbourne 3000

 United Kingdom          Australia

 T +44 20 7781 2000      T +61 3 9283 3333

 Registered in England   Registered in Australia

 No. 719885              ABN 96 004 458 404

This announcement is authorised for release to the market by Steve Allen, Rio
Tinto's Group Company Secretary.

 

LEI: 213800YOEO5OQ72G2R82

 

 

 

 

 

 

 

 

riotinto.com

 

Category: Aluminium

 1  The AP60 technology generates approximately 1.6 tonnes of CO(2)e per tonne
of aluminium produced, compared to approximately 3.2 tonnes of CO(2)e per
tonne of aluminium for the Arvida smelter's current technology, and over 12
tonnes of CO(2)e per tonne of aluminium for the industry average.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCKZGMVZZGGFZM