The global metal and mining giant, Rio Tinto has announced that the group has decided in investing US$188 million (CA$240 million) to augment the production capacity for low-carbon, high-value aluminium billets at its Alma smelter in Lac-Saint-Jean, Quebec by 202,000 tonnes.
The current casting centre at Rio Tinto's Alma facility will be expanded to accommodate new state-of-the-art equipment, counting a casting pit and furnaces, granting a larger portion of the aluminium produced to be recast to higher value billets. The construction will commence in May 2023, after completion of detailed engineering and preliminary work, while commissioning is anticipated during the first quarter of 2025.
According to global market analysis and consultancy firm, the demand for aluminium extrusion products globally is expected to grow at an average of about 3% per annum over the next ten years, driven by the energy transition and decarbonisation.
However, the investment will bolster the supply chain in North America and empower Rio Tinto to be more acute and flexible to support the crucial growth of North American manufacturers for a wide range of high-value-added products, primarily in the automotive and construction industries. Aluminium billets are extruded through a die and the resulting profiles are used to develop various products like bumpers and roof rails for cars as well as doors and window frames.
The investment is envisaged to generate around US$160 million (CA$200 million) as economically beneficial benefits for Quebec. Rio Tinto envisions that the project will certainly create around 40 new permanent jobs and succour to reinforce the 770 existing jobs at the Alma facility.
Sébastien Ross, the Managing Director of Rio Tinto Aluminium's Atlantic operations, said: “This expansion of our low carbon aluminium billet production capacity in Quebec will allow us to better meet our customer’s growing demand for high-quality alloys and value-added products made with renewable hydroelectricity. This new capacity will help to strengthen the position of our Alma smelter and we are proud to work with our employees, clients, Quebec equipment manufacturers and partners to bring this much-anticipated project to fruition.”
The Honourable François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, said: “Today's announcement shows the strength of Canada's aluminium industry. Along with significant economic benefits, Rio Tinto's investment will see more jobs and more growth in our country, while cementing Canada’s position as a global leader in the low carbon economy.”
Pierre Fitzgibbon, Quebec Minister of Economy and Innovation, and Regional Economic Development added: “In Quebec, we produce the greenest aluminium in the world. Modernization projects such as this one will enable us to maintain our leadership position in this area and contribute to the growth of this strategic sector. We have always said that the environment can and must serve the economy. The Rio Tinto project is a perfect example."
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