Rio Tinto’s (RIO) Aluminerie Alouette Invests $1.1 Billion in Quebec Aluminum Smelter Upgrade

Rio Tinto Group (NYSE:RIO) is one of the top 10 materials stocks to buy according to analysts. On July 2, Aluminerie Alouette, an aluminum producer partially owned by Rio Tinto Plc, announced plans to invest up to C$1.5 billion (approximately $1.1 billion) to modernize its operations in northern Quebec, according to sources familiar with the matter.

A worker in full safety gear operating an excavator in a mining operation.

The Sept-Îles smelter employs approximately 900 people and has an annual production capacity of 630,000 metric tons of primary aluminum. The investment will fund technological upgrades to the smelter’s infrastructure, energy efficiency improvements in production processes, enhanced production capabilities to maintain competitiveness, and strengthened environmental controls and monitoring systems. Bloomberg cited sources who said that Aluminerie Alouette has secured a new electricity supply deal with Hydro-Québec, the Quebec government-owned power utility, to support the project.

The modernized project is expected to support 900 direct jobs at the smelter. It will also create thousands of indirect jobs in the regional supply chain, enhance the tax base for municipal and provincial governments, and provide supply chain security for industries like aerospace and beverage packaging.

Rio Tinto Group (NYSE:RIO) is classified as a material stock because it operates in the basic materials sector, focusing on the exploration, mining, and processing of key industrial metals like iron ore, aluminum, copper, lithium, and titanium dioxide. With operations spanning over 35 countries, the company plays a crucial role in supplying raw materials for global infrastructure, manufacturing, and clean energy. Among its standout assets are the Pilbara iron ore mines in Australia and the Oyu Tolgoi copper-gold mine in Mongolia. Rio Tinto plays a pivotal role in the energy transition, particularly through its strategic investments in battery materials, such as lithium.

READ NEXT: 10 Best Organic Food and Farming Stocks to Buy Now and 13 Best Blue Chip Stocks to Buy According to Analysts.

Disclosure: None.