Rio Tinto Plc (NYSE:RIO) disclosed that it entered into a Memorandum of Understanding (MoU) with AMG Metals & Materials to explore the development of a large-scale, low-carbon aluminium project in India.
The initiative aims to leverage renewable energy—specifically wind and solar, supported by pumped hydro storage to power the operations.
The partnership will assess the feasibility of establishing an integrated facility with a capacity for up to 1 million tonnes per annum (Mtpa) of primary aluminium and 2 Mtpa of alumina.
As a first step, the study will focus on a potential 500,000 tpa primary aluminium smelter at a strategically chosen location in India.
Rio Tinto Aluminium Chief Executive Jérôme Pécresse said, "This study is an important step in our ambition to grow our global, low-carbon aluminium footprint while exploring new project delivery approaches and opportunities in emerging markets.”
”With its rapid economic growth and strategic position, India is a compelling location for this potential project and aligns with our long-term vision for a globally more diverse and resilient aluminium business."
Group President of AMG Metals & Materials and Greenko Mahesh Kolli added, "This MOU could deliver much needed low-carbon metal at scale to propel decarbonization initiatives in global supply chains across auto, construction, consumer packaging and many more segments."
On Wednesday, the company reported a decline in Pilbara iron ore production of 10% year-over-year (Y/Y) to 69.8Mt.
Severe weather conditions impacted both production and shipment, with four cyclones collectively causing an estimated loss of approximately 13 million tonnes.
Investors can gain exposure to the stock via VanEck Steel ETF (NYSE:SLX) and NEOS ETF Trust Mast Global Battery Recycling & Production ETF (NYSE:EV).
Price Action: RIO shares are up 1.77% at $58.17 at last check Thursday.
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