Rio Tinto and Canada to invest C$737M to decarbonise Sorel-Tracy, Quebec titanium and steel operations
Proactive Investors
Published Oct 12, 2022 10:11
Updated Oct 12, 2022 10:45
Rio Tinto and Canada to invest C$737M to decarbonise Sorel-Tracy, Quebec titanium and steel operations
Rio Tinto (LON:RIO) and the Canadian federal government will invest up to C$737 million over eight years to decarbonise the international mining company’s Rio Tinto Fer et Titane (RTFT) operations in Sorel-Tracy, Québec.
Rio Tinto said the partnership will support technological innovations to reduce greenhouse gas emissions from RTFT’s titanium dioxide, steel and metal powders business by up to 70%, and diversify RTFT’s product portfolio.
The government of Canada is investing up to $222 million through its Strategic Innovation Fund.
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Rio Tinto chief executive Jakob Stausholm said the company is committed to being part of a net-zero future, from decarbonising its operations to finding new ways to produce the materials needed for the transition.
“We are excited to collaborate with the government of Canada to position RTFT for the future and strengthen the critical minerals and metals value chains in Canada and the United States,” Stausholm said in a statement.
Prime Minister Justin Trudeau said the investment means: “Good middle-class jobs, clean air, and made-in-Canada tech: this is our vision for a strong economy and a strong future.”
François-Philippe Champagne, federal minister of Innovation, Science and Industry, said supporting the growth of the country's critical minerals supply chain will ensure it remains a global leader.
“Our government is committed to the sustainable development of critical minerals resources, creating good jobs, and building strong global supply chains while strengthening trade relationships with Canada’s closest allies,” Champagne said in a statement.
The partnership will support Rio Tinto's BlueSmelting project, increase scandium production and add titanium metal to its portfolio.
BlueSmelting
Rio Tinto said its BlueSmelting project is an ilmenite smelting technology that could generate 95% less greenhouse gas emissions than RTFT’s current reduction process, allowing for the production of high-grade titanium dioxide feedstock, steel and metal powders with a highly reduced carbon footprint.
A demonstration plant under construction at the RTFT metallurgical complex in Sorel-Tracy will have the capacity to process up to 40,000 tonnes of ilmenite ore per year and can decrease approximately 670,000 tonnes of carbon emissions, or the equivalent of removing 145,000 cars from the road, according to Rio Tinto.
Scandium
Rio Tinto said it is planning to quadruple production capacity to reach up to 12 tonnes of scandium oxide per year, from the current capacity of three tonnes.The C$30 million to $35 million project is expected to start producing scandium oxide in 2024.
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Titanium
Rio Tinto said it is working with other titanium producers to develop a new process for extracting and refining titanium metal, a material used in the medical, aerospace, and automotive industries.
The company said it is setting up a pilot plant at the RTFT metallurgical complex to explore a low-cost process, which requires no harmful chemicals and does not generate direct greenhouse gas emissions.
Contact the author at susie@proactiveinvestors.com
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