PERTH (miningweekly.com) – Diversified miner Rio Tinto has struck a renewed partnership agreement with the government of Quebec, which the miner said would strengthen its aluminium assets in the region.
The new agreement supersedes one that was signed in 2006, and will run until 2025. The agreement will benefit Rio by permitting an extended life at the Vaudreuil refinery and Arvida smelter, maintaining a power contract for the Arvida smelter at preferential rates, providing a new system to account for surpluses and deficits in hydropower, and providing flexibility and support on potential future investments in projects.
“This agreement provides Rio Tinto with the confidence to invest C$250-million to extend the life of its Vaudreuil refinery and C$200-million to continue operations at the Arvida smelter,” said Rio’s aluminium CEO Alf Barrios.
“Renewing our long-standing and successful partnership with the government of Quebec ensures that Rio Tinto’s hydro-powered aluminium operations in the region will continue to lead the industry in the production of sustainable low carbon aluminium.”
Barrios said that the agreement also provided Rio a platform for its growth options, with flexibility around potential future investments.
Rio is progressing studies into a range of potential projects, including increasing smelting and value-added product capacity, and enhancing research and development in the region.
Rio currently has over 8 000 employees in Quebec, and invests more than C$10-million annually into community partnerships and contributed C$215-million in payroll taxes in 2017.