(Kitco News) - Rio Tinto announced today it is investing US$188 million (CA$240 million) to increase the production capacity for low-carbon, high value aluminium billets at its Alma smelter in Lac-Saint-Jean, Quebec by 202,000 metric tonnes.
According to the company's statement, the existing casting center 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 aluminium produced to be converted to higher value billets.
The company said that construction will begin in May 2023, after completing detailed engineering and preliminary work, and commissioning is expected in the first quarter of 2025.
Rio Tinto noted that the global demand for aluminium extrusion products is expected to grow at an average of about 3% per year over the next ten years, driven by the energy transition and decarbonization.
"The investment will strengthen the supply chain in North America and allow Rio Tinto 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," the company said in its press-release.
The investment is expected to generate nearly US$160 million (CA$200 million) in economic benefits for Quebec. The project will create around 40 new permanent jobs and help to support the 770 existing jobs at the Alma plant.
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