Aluminum prices have regained their former glory and good prospects are ahead for this industry, which is on the way to significantly reducing its carbon footprint. It is in this favorable context that Ivan Vella, the new CEO of Rio Tinto Aluminum, begins his mandate for the multinational mining company with a strong presence in Saguenay – Lac-Saint-Jean, where he announced, last week, a first investment. in 10 years to increase its primary aluminum production at its Arvida plant.
You made a career in mining at Rio Tinto and became CEO of the Aluminum division last March when aluminum prices have never been higher in 10 years. Did you arrive at the right time?
We live in a cyclical sector. Aluminum has experienced a difficult decade due in particular to an overcapacity of the supply. It is true that the current price of US $ 2,615 per tonne is good, but it is also the short term effect of all the economic stimulus programs that governments have put in place to respond to the COVID crisis. -19.
We will see how things will be in the longer term, if prices will be maintained, but when we look at demand in North America, we see from our customers that there will be growth in the sectors of packaging, vehicles and solar panel manufacturing.
Is that why you announced, last week, the addition of 16 new AP-60 tanks to your Arvida smelter to increase its annual production from 60,000 to 86,000 tonnes of primary aluminum?
Yes, it is to meet the anticipated demand that we made this investment and because the AP-60 technology produces 7 times less carbon emissions, or 2 million tonnes of carbon per million tonnes of aluminum. produced compared to 12 million tonnes of carbon for other processes and even 18 million for Chinese aluminum smelters.
We committed to decarbonizing our industry by implementing AP-60 technology at our Arvida plant in 2013, and the next step will be the commissioning of our zero-carbon Elysis technology on a commercial basis at from 2024.
How many tanks do you plan to convert to the new Elysis technology, which you have developed in partnership with Alcoa, and over what time horizon?
It is too early to give precise figures. There are several factors that will have to be taken into account, but we are engaged in this process and it is truly incredible technology. We are there.
More and more manufacturers will require green materials in their industrial processes. Could your Quebec production, which mainly serves the North American market, be sold on international markets?
We want to serve our North American customers first, but it is certain that we will be able to sell abroad on European markets, for example, where manufacturers will demand green aluminum.
Our desire to decarbonize is not limited to our industrial processes. We also want to be more involved in recycling aluminum. We have just announced two investments, one in our Laterrière plant, where we will recycle our aluminum residues rather than selling them, and another with Shawinigan Aluminum, where we will recycle 30,000 tonnes of aluminum per year.
We believe in the circular economy, and recycling will allow us to partially meet the increased demand for aluminum.
For 30 years, all governments have wanted more aluminum produced in Quebec to be transformed here, on site. Do you believe it?
The issue of transport is important and has been an obstacle to transformation. We have to look at what is best for Quebec. I think we can improve the value chain we have here and look for opportunities to build more production facilities. We are talking about aluminum in motor vehicles, but the trucks and electric buses that we manufacture in Quebec could also transform their stainless steel chassis into aluminum.
For the first time in 20 years, China, which is the world’s largest producer of aluminum, has also become a net importer of aluminum. What does this mean for Rio Tinto Aluminum?
The Chinese authorities have put a cap on an annual production of 45 million tonnes. They are less than 40 million tonnes today, so they still have space, but aluminum production is very energy intensive and they have to switch to renewable energy. Are they going to prioritize aluminum or will they slow down their production? We’ll see.
Before becoming CEO of the Aluminum division of Rio Tinto last March, you were CEO of the Iron Ore division. What brought you to aluminum?
I started my career at Rio Tinto in procurement before becoming COO of our copper mine in Mongolia, where I resided for five years. I was subsequently CEO of the Coal Division in Australia, then Head of Rail and Port Operations for the Iron Ore Division, also in Australia.
In September 2020, following the destruction of an ancestral aboriginal site in Australia, I was appointed CEO of the Iron Ore division, where I was called upon to mediate with the community and stabilize our activities. the low. Our new CEO decided to appoint me last March as CEO of the Group’s Aluminum division.
You are originally from South Africa, you have lived in Mongolia and for a long time in Australia. How did you perceive the controversy surrounding the unilingualism of the CEO of Air Canada?
I am in a bad position to judge since I am not from Quebec and I do not speak French. But I understand very well the reaction of people and I was surprised by the comments of the CEO of Air Canada.
I’m from Australia and haven’t had the opportunity to learn French, but I want to do it to understand the richness and culture of the country like I tried to do in Mongolia. I was appointed CEO of Rio Tinto Aluminum in March, but due to strict restrictions in Australia, I was only able to leave the country in June to arrive here in July.
We just bought a house in Outremont, and I intend to find out [le français]. My 9-year-old daughter is in French immersion class and my 12-year-old son is taking a course in French.