Rio Tinto-backed aluminium producer to invest $1.1 billion in Canadian project
Aluminerie Alouette, an aluminium manufacturer partially owned by Rio Tinto Plc, is set to invest up to USD 1.1 billion in upgrading its facilities in northern Quebec, according to sources familiar with the matter.
Image credit: unctad.org
The company has reportedly secured a new electricity supply agreement with Hydro-Quebec, the government-owned power utility, the sources said. They spoke on condition of anonymity as the details remain private.
The planned investment is a positive development for an industry currently under pressure from US President Donald Trump’s trade policies. The White House has imposed 50 per cent tariffs on foreign aluminium imports, a move that is expected to impact US businesses reliant on the metal. For instance, Constellation Brands Inc., the beer and alcohol producer, said on Wednesday it anticipates the tariffs will cost the company approximately USD 20 million for the remainder of its fiscal year.
Also read: Q1 2025: Rio Tinto’s operational achievements on point with record-high bauxite production
Canada remains the largest exporter of aluminium to the US, which lacks sufficient domestic smelting capacity to meet its demand.
“The United States needs Quebec to meet its demand, especially since we produce 70% of all aluminium in North America,” Quebec Economy Minister Christine Frechette wrote in a post on X on Monday. “Our priority remains to protect our economy and our workers.”
Aluminerie Alouette is an association that includes Rio Tinto, which owns a 40 per cent share, alongside AMAG Austria Metall AG and Norway’s Hydro Aluminium, as stated on its website. Its smelter in Sept-Îles, Quebec, employs approximately 900 people and produces 630,000 metric tonnes of primary aluminium annually.
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