Rio Tinto invests US$188M to upgrade aluminum smelter in Quebec

Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO) is investing US$188 million to increase the production capacity for low-carbon, high-value aluminum billets at its Alma smelter in Lac-Saint-Jean, Que., by 202,000 tonnes.

The existing casting centre at Rio Tinto’s Alma plant will be expanded to accommodate new state-of-the-art equipment, including a casting pit and furnaces, allowing a larger portion of the aluminum produced to be converted to higher value billets.

Construction will begin in May 2023, after completing detailed engineering and preliminary work, and commissioning is expected in the first quarter of 2025.

In a press release, Sébastien Ross, managing director of Rio Tinto Aluminium’s Atlantic operations, commented: “This expansion of our low-carbon aluminum 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.”

Rio Tinto produces some of the highest quality, lowest-carbon footprint aluminum in the world. Credit: Rio Tinto

According to Rio Tinto, this investment will strengthen the supply chain in North America and allow the company to be more agile and flexible to support the critical growth of North American manufacturers for a variety of high-value-added products, primarily in the automotive and construction industries.

Aluminum billets are extruded through a die and the resulting profiles are used to make various products like bumpers and roof rails for cars as well as doors and window frames.

CRU estimates that global demand for aluminum extrusion products is expected to grow at an average of about 3% per year over the next 10 years, driven by the energy transition and decarbonization.

The investment is expected to generate nearly US$160 million in economic benefits for Quebec. The entire project will create around 40 new permanent jobs and help to support the 770 existing jobs at the Alma plant.

“In Quebec, we produce the greenest aluminum in the world,” said Pierre Fitzgibbon, Quebec Minister of Economy and Innovation, and Regional Economic Development in a news release. “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.”