Rio Tinto Group (NYSE:RIO) is included among the 15 Large Cap Stocks with Highest Dividends.
Rio Tinto Group (NYSE:RIO) engages in exploring, mining, and processing mineral resources worldwide. The company operates through its Iron Ore, Aluminium and Lithium, and Copper segments.
Rio Tinto Group (NYSE:RIO) announced on March 24 that it had secured a A$2 billion government bailout to keep its Boyne aluminum smelter running until at least 2040. Under the terms of the deal, the federal government and the state of Queensland will invest the amount over 10 years from 2030. In return, Rio Tinto has promised to invest A$7.5 billion into new renewable energy generation and storage investments to ensure the project’s transition to renewable electricity.
Operating since 1982, Boyne is the second-largest aluminium smelter in Australia. The facility has a capacity of more than 500,000 tonnes of aluminium a year and supports over 1,000 jobs. Its current power contract expires in 2029, and Rio had previously expressed doubt over the plant’s long-term future if it could not reduce emissions.
Jérôme Pécresse, chief executive of Rio Tinto Aluminium & Lithium, stated:
“This transformative partnership with the Queensland and Australian governments will ensure Boyne Smelter remains internationally competitive, strengthens the Australian aluminium sector for the future and supports the transformation and decarbonisation of the Queensland energy system.
As fossil fuels become increasingly expensive, this investment, combined with the power purchase agreements we have already signed, positions Boyne to be among the world’s first aluminium smelters underpinned by solar and wind power.
It also ensures heavy manufacturing like aluminium smelting can continue in Gladstone for the long term and preserves one of the few fully integrated aluminium value chains in the world – from bauxite mining to alumina refining to aluminium smelting all in Queensland – as demand for aluminium continues to grow with the energy transition.”
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