Rio Tinto $RIO (-0.38%) is investing USD 1.2 billion in the modernization of a hydroelectric power plant in Quebec to secure future aluminum production in the Canadian province. The mining and metals company said the move will secure its aluminum production in Saguenay-Lac-Saint-Jean for the long term and ensure a more efficient, safe and reliable supply of renewable energy to its smelters, foundries and other facilities.
The aluminum smelters in the Saguenay-Lac-Saint-Jean region are a hub for the production of a material used to manufacture everything from cans to cars to military aircraft. The plants have come under scrutiny after foreign-made aluminum became one of the first targets in the Trump administration's trade war when tariffs on aluminum and steel were imposed, which went into effect in March. Much of the aluminum the U.S. imports comes from Canada.