Rio Tinto has made another big investment in renewable metals in Canada.
Last week the company revealed plans to use lithium ore samples to produce spodumene at its trial plant in Quebec, a move that will mesh not only with lithium prospects in the Canadian province held by an Australian company (Sayona Mining) but also Rio’s near-$US1 billion lithium prospect in Argentina.
It has copper (not to mention lots of iron ore) and is looking for other minerals, some of which it has had for years in Canada such as titanium, aluminium and scandium – all of which have increasing importance in the green transition.
On Tuesday Rio and the Canadian government announced a $C737 million ($US537 million) investment plan to not only upgrade its production of titanium and scandium, but also to cut carbon emissions.
Rio says it will modernise the Sorel-Tracy site in Quebec to bolster the supply of key minerals while reducing emissions with the use of a new smelter technology.
The mining group will start producing titanium metal and quadruple scandium oxide output to 12 tonnes a year; the metals are essential to aerospace, medical products and fuel cells.
China produces three-quarters of finished titanium products and 61% of scandium globally.
The investments over the next eight years, backed by up to $C222mn of government money will upgrade Rio’s ageing business and transform its focus on steel, metal powders and titanium dioxide towards supplying materials crucial for national security and the energy transition.
Rio CEO Jakob Stausholm said the push by the west to reduce its dependence on China for materials processing and Canada’s abundant hydropower resources had encouraged it to invest in new technology to smelt ilmenite — an ore used in the production of titanium. It is planned that these techniques could cut emissions by up to 70% and diversify output at the site.
Rio produces ilmenite, as well as zircon and rutile from its Richards Bay beach minerals operation in South Africa.
“It’s the second chapter in [Sorel-Tracy’s] history that we are writing today,” he said in a statement issued overnight Tuesday. “After years where you have had excesses of globalisation of various materials, in order to address climate change you really, really need much more of the critical minerals that you can produce here.”
Rio will strengthen North America’s production capacity for titanium metal, a lightweight but strong material important to aerospace and defence groups such as Boeing and Lockheed Martin.
The deal comes after landmark US climate legislation passed in early August that provides tax credits for electric vehicle buyers if their battery uses raw materials extracted or processed from the US, from trade partner countries or through recycling.
That has accelerated the drive for manufacturing groups to relocate their supply chains regionally and cut their dependence on China.
Rio was not alone yesterday in making a renewables-related announcement. General Motors announced a deal to obtain more nickel and cobalt from Queensland Pacfic Metals yesterday (see separate story).
Rio shares fell 1.8% to $95.08.
