Rio Tinto starts construction to expand capacity at Quebec aluminum smelter

The $178 million investment will allow more of Rio's aluminium production to be used to make billets from renewable hydroelectric power.

Rio Tinto (NYSE: RIO, ASX: RIO) has begun construction to increase its capacity to cast low-carbon aluminum billets by 202,000 metric tonnes at its smelter in Alma, Quebec.

The existing casting center will be expanded to include new state-of-the-art equipment such as furnaces, a casting pit, coolers, handling, inspection, sawing and packaging systems, Rio said, adding that commissioning is scheduled for the first half of 2025.

The C$240 million ($178.6m) investment will allow more of Rio Tinto’s aluminum production to be used to make billets from renewable hydroelectric power. This will enable greater flexibility in meeting the anticipated growing demand from North American extruders for products primarily for the automotive and construction industries.

The project is expected to generate an estimated economic impact of more than $200 million for Quebec, create approximately 40 new permanent jobs and help support the 770 existing jobs at the Alma smelter.

“This expansion of our low carbon billet casting capacity in Quebec will allow us to better meet our customers’ growing demand for high quality alloys and value-added products made with renewable hydroelectricity,” Sébastien Ross, executive director of Rio Tinto Aluminium’s Atlantic operations, said in a media statement.

“We are pleased to have started construction this spring as planned and to be able to rely on the expertise of qualified employees, world-class Quebec equipment manufacturers and our partners to bring this project announced last year to fruition.”