Rio Tinto Invests $1.2 Billion To Modernize Century-Old Quebec Hydropower Plant

Rio Tinto Plc RIO shares are trading lower premarket on Friday after the company disclosed that it plans to invest $1.2 billion (C$1.7 billion) to modernize its Isle-Maligne hydroelectric power plant in Alma, Quebec, which has been operational since 1926.

This represents Rio Tinto’s most significant investment in its hydroelectric assets since the 1950s.

This power plant modernization is crucial for the long-term viability of low-carbon aluminum production in the Saguenay–Lac-Saint-Jean region, thereby securing jobs for employees throughout the area.

Also Read: Rio Tinto, Sumitomo Partner On $430 Million Copper-Gold Project In Australia

The upgrade will secure Rio Tinto’s assets, improve renewable energy supply efficiency, safety, and reliability for its operations, and ensure safe working conditions for employees and the community.

The project, slated for completion by 2032, will involve over 300 workers at its peak.

The company’s key elements comprise replacing eight turbine-alternator units and their water intake/passages, constructing a northern extension and workshop, upgrading electrical and mechanical equipment, and modifying a spillway for reliable winter use.

In addition to earlier disclosed projects valued at a combined $183 million (C$252 million) for upgrading butterfly valves and two other turbine-alternator sets at the Isle-Maligne power station, Rio Tinto is making this new investment.

As one of Canada’s largest private hydroelectricity generators, Rio Tinto benefits from seven hydroelectric plants in Quebec and British Columbia.

These facilities offer a competitive advantage, allowing the company’s modern aluminum smelters to produce some of the lowest-emission aluminum globally.

Rio Tinto Aluminium’s Managing Director for Atlantic Operations, Sébastien Ross, said, “The Isle-Maligne hydroelectric power plant has been a strategic asset for Rio Tinto for 100 years, drawing on the expertise and dedication of multiple generations of employees and business partners.”

“This major investment to modernize our facilities will ensure the long-term future and competitivity of our low carbon aluminum production in Quebec for decades to come for our Canadian and American customers.”

On Monday, the company finalized joint venture agreements with Sumitomo Metal Mining (SMM) to advance the Winu copper-gold project in Western Australia’s Great Sandy Desert.

Investors can gain exposure to the stock via VanEck Steel ETF SLX and iShares Copper and Metals Mining ETF ICOP.

Price Action: RIO shares are down 0.81% to $62.24 premarket at the last check on Friday.

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