Rio Tinto Aluminum continues its transformation with the gradual closure of its Arvida plant, which dates from 1926, and the transfer of its production to the Alma aluminum smelter, which uses cutting-edge AP60 technology, which is much less polluting. The company will, however, rely mainly on the production of recycled aluminum to meet the 40% increase in demand by 2030, anticipates its new CEO Jérôme Pécresse.
Jérôme Pécresse took office on October 23 to replace Ivan Vela, who abruptly left his post last June after only two years as CEO of Rio Tinto Aluminum.
Mr. Pécresse knows Quebec well since he was CEO of GE Renewable Energy for 11 years (he was at Alstom before the merger of the two energy groups).
“I came to Quebec to our wind turbine blade manufacturing plant in Gaspésie or to meet people from Hydro-Québec who was a big customer for our turbines and generators,” recalls Mr. Pécresse, who was also CEO of ‘Imerys, a French producer of industrial metals which operated the Lac-des-Îles graphite mine, near Mont-Laurier.
At Rio Tinto Aluminum, the new CEO has several projects underway and new projects to develop, including the closure of the old electrolysis tanks at the Arvida plant and the transfer of its production to the Alma aluminum smelter.
The investment of 1.4 billion will enable the production of 160,000 additional tonnes of less polluting aluminum from 2026.
“With AP60 technology, we will reduce by 90% the emissions of fine particles escaping from the old tanks of the Arvida factory, which produced 170,000 tonnes per year. We will also produce 30,000 tonnes of secondary aluminum at our new recycling center in Arvida,” explains Jérôme Pécresse.
Without reducing its primary aluminum production capacity, Rio Tinto Aluminum will rely more on recycled aluminum to meet industry demand, which is expected to grow by 40% by 2030.
Electric cars alone use twice as much aluminum as traditional cars; it is needed for the manufacture of solar panels, electrical networks, etc.
Jérôme Pécresse, CEO of Rio Tinto Aluminum
1er Last December, Rio Tinto Aluminum acquired 50% of the Matalco company belonging to the Giampaolo group of Toronto. A transaction worth almost 1 billion.
Matalco operates seven aluminum recycling plants in North America, six in the United States and one in Canada. This joint venture will produce 900,000 tonnes of secondary aluminum per year and these additional sales will be consolidated on Rio Tinto Aluminum’s balance sheet.
“These 900,000 tonnes of secondary aluminum will be added to the 2 million tonnes of primary aluminum that we produce on all our Canadian sites, we add 45% of capacity. Manufacturing a ton of secondary aluminum produces only 5% of the carbon compared to a ton of primary aluminum,” explains Jérôme Pécresse.
Decarbonization and energy needs
We know that the multinational Rio Tinto wants to reduce its global carbon footprint by 50% by 2030 and aluminum production alone accounts for 70% of all emissions from the mining company.
In Quebec, the company’s balance sheet will improve with the entry into service of the new AP60 electrolysis tanks in 2026, but Rio Tinto Aluminum wants to decarbonize other activities such as those of its bauxite refinery in Vaudreuil.
“The factory is powered by natural gas, we want to switch to renewable energies. We will study with Hydro-Québec the feasibility of different projects,” says the CEO.
One thing is certain, as former CEO of GE Renewable Energies, Jérôme Pécresse does not rule out the construction of wind farms, both in Vaudreuil and in Saguenay–Lac-Saint-Jean.
“We are currently doing wind tests in Saguenay because onshore wind power could meet some of our energy needs. We want to develop in partnership with Hydro-Québec and the community of Mashteuiatsh. »
As head of Rio Tinto’s global aluminum operations, the new CEO is committed to decarbonizing the group’s aluminum smelters in Australia, whose electricity is produced from coal.
“We have partnered with local producers who will build wind and solar farms which will produce 2.5 of the 4 gigawatts we need. It will be the largest renewable energy park in Australia,” underlines Jérôme Pécresse.
If, in Quebec, Rio Tinto produces 90% of its energy needs with its own network of seven hydroelectric power stations for which it was granted operating rights by the Quebec government, it anticipates having additional needs in the future.
This is why Rio Tinto has notably undertaken the restoration of the L’Isle-Maligne power station in Alma, also built in 1926, which must be completely refurbished and which will require investments of 1 billion over a few years.
In terms of new investments, Rio Tinto will also invest 250 million in the construction of a new billet foundry in Alma.
“Each year, we invest 500 million in Saguenay–Lac-Saint-Jean for the maintenance of our infrastructure. We have 4,300 employees in the region and the group has 8,000 across Quebec, which makes us the leading industrial employer in Quebec,” underlines the new CEO.
Finally, the group is studying the feasibility of producing, from residues from alumina production in Vaudreuil, gallium, a rare metal which is used in the manufacture of microprocessors and which is mainly produced by Russia and China.
“We are looking at the possibility of refining the residue and producing gallium, this would be important for Canadian sovereignty. Gallium is a strategic mineral and North America depends on foreign countries for its supplies,” concludes Jérôme Pécresse.