The Canadian Government is providing C$193.3 million ($196.2 million) for aluminium-processing projects operated by Rio Tinto (ASX:RIO) and Aluminerie Alouette in Québec.
Industry Minister Mélanie Joly announced the funding on 23 October through Canada’s Strategic Response Fund.
Rio Tinto will receive C$164.8 million towards C$818.5 million of projects across its Saguenay–Lac-Saint-Jean aluminium operations.
The projects include a new billet casting centre at the Alma smelter and the modernisation of anode-baking furnaces at the Grande-Baie facility.
Rio Tinto Aluminium Managing Director Atlantic Operations Sébastien Ross says the funding will support further investment in Québec.
“It’s helping reinforce our value chain, support quality jobs, and create the necessary conditions for continuing to invest, innovate, and produce here in Québec and in Canada,” he says.
The remaining C$28.5 million will support Aluminerie Alouette’s C$135 million modernisation and electrolysis program. The company says the partially repayable contribution will support projects expected to reduce annual emissions by 25,000 tonnes of carbon dioxide equivalent.
The government expects the combined investments to maintain about 6,000 full-time jobs and create 65 work placements.
The funding comes as Canada moves to accelerate approvals for major mining, energy, and infrastructure projects. It also follows escalating trade tensions with the US that have raised concerns about cross-border critical mineral flows.
The C$193.3 million package is directed towards downstream aluminium processing rather than mineral extraction.
Rio Tinto produces about half its group aluminium output in Québec, while Aluminerie Alouette operates a 633,000-tonne-per-year smelter at Sept-Îles.
Write to France Pinzon at Mining.com.au
Main image: Rio Tinto
