Rio Tinto PLC

Rio Tinto and BHP join forces with BlueScope to build Australia's largest electric iron furnace $RIO (-0,87 %)
$BHP (-0,6 %)

Australian companies BHP and Rio Tinto will jointly develop a pilot plant to produce low-carbon iron from Pilbara ore to accelerate decarbonization in the steel industry, the companies said in a joint statement on Tuesday.

The plant will use renewable energy and direct reduced iron (DRI) technology in an electric smelting furnace (ESF) to produce molten iron with a potential annual production of 30,000 to 40,000 tons.

The plant is being developed in partnership with BlueScope Steel BSL.AX in the Western Australian industrial hub of Kwinana.

If successful, the technology could enable steelmakers using Australian iron ore to meet global demand to operate with near-zero greenhouse gas emissions, the companies said.

Steel production, a key material for infrastructure and net-zero energy transition, currently accounts for around 8% of global carbon emissions.

The 'Green Iron' pilot project between Rio, BHP and BlueScope Steel was announced in February to reduce emissions from steelmakers around the world that rely on Australian iron ore.

The project has now finalized the location and details, including projected production, after reviewing several sites in Australia.

Woodside Energy $WDS (+1,31 %) will also participate as an equal shareholder and energy supplier in the collaboration, named 'NeoSmelt', pending final commercial agreements.

The project is expected to commence feasibility studies in the second quarter of 2025, followed by a final investment decision in 2026 and commencement of operations in 2028, the companies said.

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Rio Tinto
$RIO (-0,87 %) examines gallium extraction in Canada

Global mining company Rio Tinto is exploring the feasibility of extracting gallium, a critical mineral, at its aluminum refinery in Saguenay, Quebec. This initiative is part of a research and development program to strengthen the North American strategic minerals supply chain.

The company has announced plans to build a demonstration plant in Saguenay that could produce up to 3.5 tons of gallium per year if the technology is successfully developed. The Quebec government has pledged to support this demonstration phase with up to 7 million Canadian dollars. If scaled up commercially, the plant could potentially produce 40 tons of gallium annually, equivalent to 5-10% of current global production. This expansion is consistent with Rio Tinto's robust operating efficiency, reflected in healthy EBITDA (earnings before interest, taxes, depreciation and amortization) of $19.64 billion and strong cash flows that adequately cover the company's moderate debt.

Gallium is an essential component in the manufacture of integrated circuits, which are essential in various advanced technologies such as smartphones, electric vehicles and laptops. The development of this project is seen as a strategic move to strengthen the supply of a critical mineral for numerous sectors.

Jérôme Pécresse, CEO of Rio Tinto Aluminum, expressed his gratitude for the significant financial commitment from the Quebec government and emphasized the company's commitment to this landmark project. Maïté Blanchette Vézina, Quebec's Minister of Natural Resources and Forestry, praised the project's alignment with the government's vision of a more circular and greener economy. The Honorable François-Philippe Champagne, Canada's Minister of Innovation, Science and Industry, highlighted the collaboration between government and industry to position Canada as the global supplier of choice for critical minerals.

In North America, Rio Tinto already produces a variety of critical minerals, including scandium, tellurium and molybdenum, which are used in applications ranging from aluminum alloys to solar cells and steel alloys. The company continues to explore the extraction of new materials from its operations as part of ongoing R&D initiatives.

Rio Tinto
$RIO (-0,87 %) invests 2.5 billion dollars in Argentinian lithium project

has announced a substantial $2.5 billion investment in the Rincon lithium project in Argentina, marking a significant step towards the construction of its first large-scale lithium operation. The project, located in the famous "Lithium Triangle", is expected to have a production life of 40 years and will begin construction of its expansion plant in mid-2025, subject to permitting. According to InvestingPro, Rio Tinto has a strong financial rating of "GREAT" and operates with a moderate debt-to-equity ratio, which positions the company well for this major investment.

The Rincon project is designed to produce 60,000 tons of battery-grade lithium carbonate per year, which includes a 3,000-tonne starter plant and a 57,000-tonne expansion. Initial production is planned for 2028, with capacity to be gradually increased to full capacity over the following three years. It is anticipated that this development will create numerous jobs and stimulate economic growth for local businesses.

Jakob Stausholm, Chief Executive of Rio Tinto, emphasized the alignment of the investment with the global energy transition and the company's commitment to high environmental, social and governance (ESG) standards. The use of advanced technologies is expected to halve water consumption during processing, which is in line with the company's sustainability goals. The company's strong financial position, with a P/E ratio of 9.72 and robust cash flows, supports its ambitious environmental initiatives. The InvestingPro analysis reveals 8 other key findings about Rio Tinto's financial health and market position.

The Rincon project utilizes direct lithium extraction (DLE) technology, which is known for its benefits in water conservation, waste reduction and consistent lithium carbonate production. Rio Tinto's investment in Rincon, combined with the planned acquisition of Arcadium, positions the company to become a leading lithium producer.

Argentina's economic reforms and the new Large Investment Incentive Scheme (RIGI) provide a favorable backdrop for the investment. The scheme offers benefits such as lower tax rates, accelerated amortization and regulatory stability for 30 years, which insures the project against future policy changes and improves investor protection.

This investment is in line with Argentina's ambition to become a leading lithium producer and is included in Rio Tinto's investment forecast.

Australian women sue for sexual harassment against Rio Tinto $RIO (-0,87 %) and BHP $ABHPG

A group of Australian women have filed a lawsuit against Rio Tinto PLC and BHP Group Ltd. alleging that they were frequently discriminated against and sexually harassed while working for the mining companies.

Two separate lawsuits were filed in an Australian court on Wednesday afternoon. They represent women who have worked for the miners for the past 20 years.

"These class actions will give a voice to these women, many of whom have been afraid to speak out for fear of losing their jobs or facing reprisals in the workplace," said lawyer Joshua Aylward.

We have heard reports of everything from unwanted touching and sexual harassment to rape, violence and physical threats, as well as gender discrimination and pregnancy discrimination".

Neither BHP nor Rio Tinto commented specifically on the content of the complaints.

The main plaintiff in the case against the Anglo-Australian company Rio Tinto alleges that she was sent "unsolicited sexually explicit messages, videos and images" while working as a security guard.

She asked to remain anonymous for fear of reprisals and said she was "passed over for training opportunities" following her complaint.

Standing up and speaking out comes at a huge professional and personal cost, but until women in the mining industry come together and say, 'Enough is enough,' the big companies will continue to cover this up," she said in a statement provided by her lawyer.

The lead plaintiff in the case against Australian mining company BHP, who also requested anonymity, claimed she was subjected to a constant barrage of sexual and derogatory comments.

When she rejected a colleague's advances, he allegedly "walked up behind her in a parking lot and urinated on her," according to a statement from her lawyer.

She filed a complaint but was never contacted, and her contract was terminated while her colleagues were kept on.

More than 45,000 women worked in the Australian mining industry in 2022, an increase from 8,700 in 2002, according to the latest government data.

A BHP spokesman said there was "no place" for sexual harassment.

"We are committed to creating a safe and respectful workplace for all," it told AFP on Thursday.

"We deeply regret and apologize unreservedly to anyone who has ever experienced any form of harassment at BHP," the spokesman said, adding that the mining company would take all reports seriously and take strict disciplinary action.

Rio Tino told national television station ABC that it treats allegations of sexual harassment with "the utmost seriousness".

We do not tolerate any form of sexual harassment or harassment based on gender.

ERA announces management change in the course of the takeover of Rio Tinto announced $ERA
$RIO (-0,87 %)

Energy Resources of Australia (ERA) has announced leadership changes to manage the transition following Rio Tinto's decision to compulsorily acquire the company.

CEO and MD Brad Welsh will end his secondment from Rio Tinto on December 16. Welsh, who has worked for Rio Tinto in various senior roles since 2011, will also leave the mining giant when his ERA secondment ends.

To ensure continuity during the acquisition process, Welsh will remain in his role as CEO and managing director of ERA under a consultancy agreement.

In addition, Richard Prest, CFO and co-secretary of the company, will step down on December 16, 2024. Prest will be replaced by David Pritchard-Davies, ERA's current Senior Finance Manager.

Rio Tinto is acquiring full control of ERA to support the successful redevelopment of the decommissioned Ranger uranium mine adjacent to Kakadu National Park.

ERA also owns the Jabiluka project, but its mining permit was revoked earlier this year as part of plans to integrate the area into Kakadu National Park. Rio Tinto had previously emphasized that it had no intention of investing in the mining or development of the Jabiluka deposit.

UEC $UEC (-6,05 %) completes acquisition of Rio Tinto uranium assets $RIO (-0,87 %) finalized

Acquisition of Rio Tinto's Wyoming assets, which include the Sweetwater facility and a portfolio of uranium mining properties with approximately 175 million pounds of historic resources.

UEC paid $175.4 million in cash for the assets, which President and CEO Amir Adnani calls a "rare opportunity."

The Sweetwater facility, a 3,000 ton per day mill with a licensed capacity of 4.1 million pounds of uranium oxide per year, can also be converted to recover uranium from loaded resins resulting from in-situ recovery (ISR) operations, providing UEC with the flexibility to support both ISR and conventional mining. With the addition of the Sweetwater facility, UEC has the largest licensed production capacity in the United States.

"Recent investments in nuclear energy by big tech companies like Microsoft, Amazon, Google and Meta demonstrate the unprecedented interest in expanding U.S. nuclear baseload capacity by some of the largest and most advanced companies in the world. These companies recognize that nuclear energy is a critical source of highly reliable, clean and safe power to meet the growing energy needs of AI computing. As the largest U.S.-based uranium company, UEC will play a critical role in providing the fuel needed today and in the future - a point underscored by the uranium export restrictions recently announced by Russia," Adnani said.

UEC's next steps for the acquired asset portfolio include completing a Securities and Exchanges Commission Regulation S-K 1300 technical resource summary report to update and confirm historical estimates, building a dedicated team focused on advancing the Sweetwater hub-and-spoke production platform, as well as refurbishing portions of the Sweetwater facility and completing equipment modifications for ISR processing.

Rio Tinto
$RIO (-0,87 %) raises copper forecast to change everything

The British-Australian mining group Rio Tinto has significantly revised its investment forecast up to 2025 and plans to significantly increase copper production in the coming years.

Rio Tinto expects average annual growth of three percent from 2024 across all business areas. The planned 50 percent increase in production at the Mongolian operations in particular is driving the copper ambitions.

The company wants to increase its annual copper production to one million tons by 2030. "With the commissioning of the Oyu-Tolgoi underground copper mine in Mongolia, the implementation of the Simandou project for high-grade iron ore in Guinea and the expansion of our lithium business through the planned acquisition of Arcadium, we are setting the course for a decade of profitable growth," explained CEO Jakob Stausholm.

Rio Tinto signs new partnership agreement to investigate a low-carbon aluminum low-carbon aluminum project in Finland

Rio Tinto $RIO (-0,87 %) has signed a partnership agreement with Swedish investment company Vargas, Mitsubishi Corporation and other international and local industry partners to explore the possibility of low-carbon greenfield aluminum production in Finland.

As a strategic industry partner, Rio Tinto will provide the Arctial partnership with access to its proven, industry-leading AP60 technology and support the first deployment of AP60 in an aluminum smelter outside of Quebec, Canada. Rio Tinto's AP60 technology is one of the most efficient aluminum smelting technologies currently available on a commercial scale.

As a first step, Arctial will conduct a feasibility study and environmental impact assessment for a potential new aluminum project in Kokkola, Finland.

If the project is successful, it would be the first development of primary aluminum in continental Europe in over 30 years. Together with Fortum, the leading supplier of zero-carbon energy in the Nordic countries, the project will explore the sourcing of competitive low-carbon energy from existing and new production facilities. Other local and industry partners include the Finnish Industrial Investment (TESI) and international technology leaders.

Rio Tinto Aluminium CEO Jérôme Pécresse said: "We are committed to being a major investor and buyer in this partnership, which is in line with our strategy to strengthen our global leadership in low-carbon aluminum."

"The combination of our AP60 technology with non-fossil fuel-based electricity represents an attractive opportunity to provide low-carbon aluminum that will strengthen Europe's industrial base and support the production capacity needed for the energy transition."

Rio Tinto's
$RIO (-0,87 %) CEO defends listing in London

CEO Jakob Stausholm has rejected calls from activist shareholders to abandon the company's primary listing in London.

Palliser Capital, a global multi-strategy fund that holds around $250 million worth of Rio Tinto shares, argued that the dual listing has destroyed $50 billion in value and hindered large-scale mergers and acquisitions.

The fund also claimed that unifying the structure under Australian listing rules could unlock $28 billion in shareholder value in the short term.

At an investor seminar in London, Stausholm argued that dual listing was valuable to shareholders.

"We have seen no compelling evidence to suggest that our current structure is not the best option for Rio Tinto,"he said, according to a Bloomberg report.

Instead, he presented a thoughtful strategy to strengthen the company's diversified portfolio.