MINEX Forum

Tag: Rio Tinto

  • Canada Unveils C$1.4 Billion G7-Backed Critical Minerals Investment Plan

    Canada Unveils C$1.4 Billion G7-Backed Critical Minerals Investment Plan

    Rio Tinto Group, Nouveau Monde Graphite Inc., and more than a dozen other companies are set to benefit from a C$1.4 billion ($1 billion) package of new investments and partnerships announced by the Canadian government at the Group of Seven (G7) energy ministers’ meeting in Toronto.

    The measures, unveiled by Prime Minister Mark Carney’s administration, are part of a G7 initiative launched in June to strengthen member nations’ access to critical minerals vital for clean energy, defense, and advanced manufacturing, while reducing reliance on Chinese-dominated supply chains.

    “We have an incredible set of cards in our critical mineral resources,” said Energy Minister Tim Hodgson. “These actions, with the support of our allies, are designed to make sure Canada has all the cards it needs in a world where access to critical minerals is becoming a tool of political and geopolitical coercion.”

    The newly announced projects aim to expand domestic production capacity for metals such as lithium, nickel, copper, and rare earth elements, supporting the transition to clean technologies and reinforcing the resilience of North America’s industrial base.

    Key funding allocations include:

    • C$25 million for Rio Tinto’s scandium plant in Quebec, which will supply the aerospace and defense sectors.

    • C$36.3 million for Ucore Rare Metals Inc. to expand its rare earths processing plant in Ontario.

    • Support for Northern Graphite Corp., Focus Graphite Inc., and Torngat Metals Ltd., alongside a new supply agreement between Canada, Panasonic Holdings Corp., and Traxys North America LLC to secure graphite for battery production.

    Shares of Nouveau Monde Graphite surged 24% intraday on news of the deal before closing 13% higher in Toronto, while Northern Graphite rose 29%.

    Not all financing is finalized: Norway’s Vianode AS, which plans to build a synthetic graphite plant in Ontario, received a letter of interest for up to $500 million in potential Canadian financing, plus $300 million in support from the German government.

    In parallel, Canada has designated critical minerals as essential to national defense and strategic interests, authorizing a domestic stockpiling program and participation in multilateral caching efforts with allies. The government intends to stockpile three types of critical minerals, though it did not disclose which ones.

    “These measures will strengthen our capabilities in strategic sectors and contribute to NATO and defense spending commitments,” Hodgson said. “By protecting domestic production under volatile global conditions, we ensure a secure supply of critical minerals to Canadian and allied defense industries.”

  • Rio Tinto Targets Strong Q4 Finish to Meet Iron Ore Shipment Goals Amid China Demand Surge

    Rio Tinto Targets Strong Q4 Finish to Meet Iron Ore Shipment Goals Amid China Demand Surge

    Rio Tinto said on Tuesday that it will need a robust fourth-quarter performance to hit its 2025 iron ore shipment target, as Chinese demand strengthens on the back of infrastructure-driven stimulus and front-loaded global investment ahead of potential new tariffs.

    The world’s largest iron ore miner reported 84.3 million tonnes of iron ore shipped from its Western Australia operations during the third quarter, slightly below the Visible Alpha consensus estimate of 85.5 million tonnes. Despite the shortfall, iron ore prices have climbed to their highest levels since February, fuelled by Beijing’s targeted infrastructure programs that have spurred steel production.

    China’s iron ore imports reached a record high in September, according to Rio, reflecting renewed industrial momentum despite ongoing economic challenges such as deflation, weak manufacturing, slow exports, and persistent property market struggles.

    Rio reaffirmed its annual shipment guidance of 323–338 million tonnes, but noted that four cyclones earlier this year disrupted output, meaning results are likely to fall near the lower end of the range.

    “A strong Q4 performance is required as the system remains tightly balanced and has limited ability to mitigate further losses,” the company said.

    Shares of Rio Tinto (ASX: RIO) jumped 3.6% in early trading to their highest since late September, tracking gains across major iron ore producers. BHP and Fortescue Metals Group also rose more than 2% each.

    Under its new CEO Simon Trott, who restructured Rio into three main divisions — iron ore, aluminium and lithium, and copper — the company continues to focus on safety and diversification. Rio confirmed that shipments from its Simandou project in Guinea remain on track to begin before year-end, despite a recent fatality at the site.

    Beyond iron ore, Rio reported record copper production at Oyu Tolgoi in Mongolia, forecasting a more than 50% increase in copper output this year as demand surges for energy transition metals. The miner also logged a second consecutive record quarter for bauxite production, prompting an upward revision of its full-year forecast to 59–61 million tonnes, supported by strong performance at the Amrun mine in northern Australia.

  • Rio Tinto’s Oyu Tolgoi Mine Exposes the Gap Between Ethical Investment and Reality

    Rio Tinto’s Oyu Tolgoi Mine Exposes the Gap Between Ethical Investment and Reality

    The controversy surrounding Rio Tinto’s Oyu Tolgoi (OT) copper and gold mine in Mongolia has once again drawn global attention to the disconnect between ethical investment claims and corporate accountability. While the mining giant recently paid US$139 million (AU$211 million) to settle a lawsuit with U.S. investors over cost overruns, local Mongolian herders continue to suffer from the project’s long-standing environmental impacts.

    For over a decade, herding families in southern Mongolia have raised alarms over water contamination and soil degradation linked to the mine’s tailings seepage, which Rio Tinto has acknowledged since 2013. According to environmental audits, the leak migrated off-site into a nearby riverbed, threatening groundwater resources critical to local communities and livestock.

    Despite the severity of the issue, Rio Tinto only met with affected herders a year after admitting the leak, and no effective measures have been taken to halt the seepage. Experts say the company’s response has focused on monitoring and containment rather than preventive measures, such as improving tailings storage design or reducing water content in waste materials.

    Auditors and independent assessors have flagged multiple safety and environmental failures, including inadequate seepage collection systems, missing cutoff trenches, and a lack of reliable indicators to monitor contamination. Meanwhile, Rio Tinto has not disclosed the full list of chemicals present in the seepage, nor provided medical screening or compensation for affected herders.

    Critics argue that the cost of these design flaws has been externalised onto local communities and ecosystems, while investors have received swift settlements. “Rio Tinto’s willingness to pay investors but ignore local harm highlights a troubling double standard,” wrote Caitlin Daniel and Julio Castor Achmadi of Accountability Counsel, who have worked with affected communities.

    The Oyu Tolgoi mine, expected to operate for another 30 years, is one of the largest copper projects in the world and a key asset for Rio Tinto’s global portfolio. However, the company’s handling of the project has raised reputational concerns for investors and financiers, including the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD), which helped arrange new funding for OT last year despite ongoing environmental disputes.

    The authors argue that ethical investors must demand greater transparency and accountability from Rio Tinto, warning that the company’s pattern of delayed responses and unfulfilled promises could pose both financial and moral risks.

    “If Rio Tinto won’t uphold its environmental and social standards,” they conclude, “investors must ask whether this is a company worth backing — or a liability in the making.”

  • Primetals, Rio Tinto, and voestalpine Break Ground on Industrial-Scale Net-Zero Ironmaking Plant in Austria

    Primetals, Rio Tinto, and voestalpine Break Ground on Industrial-Scale Net-Zero Ironmaking Plant in Austria

    Construction has officially begun on an industrial-scale demonstration plant in Linz, Austria, that aims to revolutionize ironmaking with potential net-zero CO₂ emissions. The groundbreaking ceremony, held on September 25, 2025, brought together political leaders and industry representatives, marking a major step forward for green steel technology.

    The plant, dubbed Hy4Smelt, will combine Hydrogen-based Fine-Ore Reduction (HYFOR®) technology with an electric Smelter solution, both developed by Primetals Technologies. Scheduled to start operations by the end of 2027, the facility will produce hot briquetted iron, hot metal, and pig iron with a planned capacity of 3 tons per hour. Unlike conventional blast furnaces, HYFOR eliminates the need for agglomeration of iron ore fines and utilizes green hydrogen as a reducing agent, while the Smelter finalizes reduction using renewable energy.

    Voestalpine CEO Herbert Eibensteiner emphasized the project’s role in reaching net-zero steelmaking by 2050: “Seeing construction underway of the globally unique Hy4Smelt demonstration plant once again confirms our technological and innovation leadership in green steel production.”

    Rio Tinto will supply 70% of the iron ore for the plant and provide technical support, while Mitsubishi Corporation has joined as a strategic co-investor. The initiative also benefits from funding by the Austrian government’s “Transformation of Industry” program, as well as EU-backed initiatives like the Clean Steel Partnership and the Clean Hydrogen Partnership.

    Primetals Technologies has been testing HYFOR at a pilot plant since 2021, running over 50 campaigns with various iron ore sources. CTO Alexander Fleischanderl described the new project as “a major step toward net-zero CO₂ emissions in ironmaking,” stressing the urgent need to transition away from coal-fired blast furnaces.

    If successful, the HYFOR and Smelter technologies could become commercially available from 2028, offering a scalable pathway to decarbonize global steel production while tapping into low-to-medium grade ores that dominate the world’s supply.

  • Europe Sees Surge in Canadian Aluminum Shipments as US Tariffs Bite

    Europe Sees Surge in Canadian Aluminum Shipments as US Tariffs Bite

    Canadian aluminium producers have rapidly redirected exports from the United States to Europe after the US imposed tariffs of up to 50%, causing a dramatic surge in Canadian metal shipments to European markets during 2025.

    The shift is most notable among Quebec’s producers, who supply about 90% of Canada’s aluminium. The US share of Quebec’s exports fell to 78% in Q2 2025 from 95% in Q1, while Europe’s share soared to 18% from just 0.2%, according to S&P Global Market Intelligence[2]. Companies like Rio Tinto, Alcoa, and Aluminerie Alouette have led this pivot—Alouette, for instance, sent 57% of its output to Europe in Q2, up from 4% previously[1]. Alcoa alone diverted more than 100,000 metric tonnes to Europe in the quarter.

    Key European destinations now include the Netherlands (11,800 tonnes imported April–May), Italy (25,500 tonnes), and Germany[1][3]. European buyers welcome these Canadian shipments for their high quality and lower carbon footprint compared to global alternatives, as well as the opportunity to diversify supply and benefit from competitive prices[1].

    The underlying cause is the US decision to reinstate a 25% tariff on Canadian aluminium in March 2025—then double it to 50% in June[1][2][3]. This has pushed the US Midwest premium (the local price above the global benchmark) up by 82% since June, making deliveries from Canada financially unviable for many US buyers, while European warehouse premiums have dropped due to the influx of Canadian supply.

    Jean Simard, president of the Aluminium Association of Canada, said: “It’s an easy call. You ship anything you can to Europe. As the price builds up into the US, you can expect metal to come back to the US market.”

  • Rio Tinto Pushes Forward with Serbia’s Jadar Lithium Project Amid Environmental Debate

    Rio Tinto Pushes Forward with Serbia’s Jadar Lithium Project Amid Environmental Debate

    Rio Tinto is actively seeking regulatory approvals to revive its Jadar lithium project in western Serbia, a venture that could become one of the largest greenfield lithium mines globally. Speaking to SeeNews, Chad Blewitt, Managing Director of the Jadar Project, confirmed that the company is awaiting approval for a revised Environmental Impact Assessment (EIA) study and other critical permits, including an exploitation field license.

    “If we secure all necessary regulatory approvals and public consultations go smoothly, we could begin construction within the next few years,” Blewitt said. The company previously planned to start production in 2027 following the mine’s completion in 2026.

    The Serbian environmental protection ministry has yet to comment on the status of the EIA review. Once the scope is approved, Rio Tinto will have one year to complete the updated study.

    Discovered in 2004, the Jadar deposit contains jadarite, a unique lithium- and boron-rich mineral. If developed, the mine is expected to produce 58,000 tons of battery-grade lithium carbonate annually over a 40-year lifespan, potentially placing Rio Tinto among the world’s top ten lithium producers.

    However, the project has sparked significant backlash. Environmentalists, local residents, and scientists warn that mining in a fertile and densely populated valley could have catastrophic ecological consequences. Activist group Ne Damo Jadar points out that the mine’s projected footprint affects 17 villages, with five located near the planned landfill zone—home to nearly 19,500 people.

    Blewitt rejected these criticisms, calling them “reckless” and based on misinformation. “Scientific facts confirmed by independent experts show the project is safe,” he said, emphasizing that the Jadar mine has passed the most rigorous environmental studies ever conducted in Serbia.

    The European Commission recently added Jadar to its list of strategic raw materials projects outside the EU, a move Blewitt says proves the project can meet the highest environmental and human rights standards.

    Originally estimated at €2.55 billion, the project’s capital cost is now under review to incorporate new technical developments. Economic benefits touted by Rio Tinto include an estimated €695 million annual contribution to Serbia’s GDP and over €180 million in yearly state revenues from taxes and royalties. The operational phase is expected to create 1,300 permanent jobs, with additional economic ripple effects potentially generating over 20,000 new roles in associated sectors like battery and EV production.

    Blewitt, who returned to lead the Jadar project in 2023 after advancing Rio Tinto’s operations in Guinea and Mongolia, remains focused on finalizing the EIA and ensuring full regulatory compliance before breaking ground.

  • Europe’s Jadar Dilemma: Lithium Sovereignty or Green Colonialism?

    Europe’s Jadar Dilemma: Lithium Sovereignty or Green Colonialism?

    The European Union’s push toward a carbon-neutral future hinges heavily on securing reliable lithium supplies—now formally classified as a critical raw material under the bloc’s Critical Raw Materials Act. With global lithium demand forecasted to rise 40-fold by 2040, the EU is racing to secure domestic or allied sources to reduce dependency on China, which currently dominates the lithium-ion battery market.

    One project at the heart of this race is Rio Tinto’s Jadar lithium-boron mine in western Serbia, which boasts 118 million tonnes of ore with 1.8% lithium oxide—enough to potentially power one million electric vehicles annually and meet 90% of Europe’s lithium needs. Strategically, it’s a game-changer. But politically and environmentally, it’s a powder keg.

    Located near Loznica, Serbia’s agricultural heartland, the Jadar project faces fierce grassroots resistance. Local communities warn of severe environmental consequences, including water contamination in the Drina River basin and dangerously high boron levels in soil. The backlash has been compounded by allegations of secret tax deals struck between Rio Tinto and the Serbian government before public consultations even began.

    Despite over 60% of Serbians opposing the mine, the European Commission recognized Jadar as a strategic project on 4 June 2025, highlighting its geopolitical importance as a counterweight to growing Chinese and Russian influence in the Balkans. Serbia’s alignment with both nations—China via Belt and Road projects and Russia through cultural ties—adds urgency to Brussels’ resource diplomacy.

    Yet, critics argue that this comes at the cost of democratic accountability. The EU’s continued cooperation with Serbia—despite democratic backsliding under President Aleksandar Vučić—has drawn accusations of supporting a “stabilitocracy”: sacrificing democratic standards for geopolitical stability and mineral access.

    While the EU insists on adherence to environmental safeguards and public consultation protocols, the silence from Brussels on political repression and opaque governance in Serbia has raised eyebrows. Ursula von der Leyen has pledged to “respect and preserve the beautiful nature of Serbia,” yet local residents see the Jadar initiative as a form of “green colonialism”—where rural areas are sacrificed for Western decarbonisation agendas.

    This case lays bare the contradiction at the heart of Europe’s green ambitions: balancing climate goals with ethical governance and local consent. If not resolved with genuine transparency and accountability, the EU risks not only undermining its credibility but also fueling resentment in a region already caught in a tug-of-war between East and West.

  • Rio Tinto Shifts Oyu Tolgoi Mine Plan Due to License Delays

    Rio Tinto Shifts Oyu Tolgoi Mine Plan Due to License Delays

    Rio Tinto has announced adjustments to its underground development plan at the Oyu Tolgoi copper-gold mine in Mongolia. While the company remains committed to its target of 500,000 tonnes of copper production per year from 2028 to 2036, development in the Entrée Resources joint venture (JV) area has been paused due to delays in license transfers to the mine’s operating entity.

    This decision allows Rio Tinto to prioritise development in the more accessible Panel 2 South, ensuring the project stays on track.

    However, the delay in the Entrée JV area has caused concern for Entrée Resources, which expressed disappointment over the holdup, highlighting its potential impact on the project’s timeline, cost, and their financial position.

    Despite these challenges, Rio Tinto maintains its 2025 copper production guidance and underscores the importance of Oyu Tolgoi, one of the world’s largest known copper-gold resources, for both its growth strategy and Mongolia’s economic development.

  • Rio Tinto’s Jadar Lithium Project in Serbia Gains EU Strategic Status Amid Fierce Environmental Opposition

    Rio Tinto’s Jadar Lithium Project in Serbia Gains EU Strategic Status Amid Fierce Environmental Opposition

    The controversial lithium and boron mining project in Serbia’s Jadar Valley, spearheaded by Anglo-Australian mining giant Rio Tinto, has been designated as one of 13 strategic projects outside the EU under the European Commission’s Critical Raw Materials Act (CRMA). The move aims to secure long-term access to critical raw materials vital for Europe’s green transition.

    Located in western Serbia, the Jadar Valley is believed to host Europe’s largest lithium reserves and one of the most significant global deposits. The lithium extracted from the site is considered crucial for manufacturing electric vehicle (EV) batteries, an industry central to the EU’s climate and industrial strategies.

    Despite its strategic importance, the Jadar project has sparked intense opposition within Serbia. Environmentalists have organized mass protests since 2021, arguing the mine threatens local ecosystems, water sources, and agriculture. Public pressure led the Serbian government to revoke Rio Tinto’s licenses in 2022—a decision later overturned by the Constitutional Court in 2023.

    The European Commission’s endorsement reflects growing concern over the EU’s dependence on Chinese-dominated supply chains for critical minerals. By supporting the Jadar project, Brussels aims to bolster domestic resilience and reduce geopolitical vulnerability.

    However, local opposition remains firm. Environmental groups warn of renewed protests and blockades if the mine proceeds, arguing that no economic benefit can outweigh the environmental cost.

    Rio Tinto has pledged to meet the EU’s environmental and human rights standards as part of the project’s strategic designation. “The project will undergo multiple stages of scrutiny and public consultation,” said Chad Blewitt, Managing Director of the Jadar project. “It positions Serbia at the forefront of the green and digital revolution.”

  • Rio Tinto Reevaluates Cost of Serbian Lithium Project Amid EU Backing and Local Opposition

    Rio Tinto Reevaluates Cost of Serbian Lithium Project Amid EU Backing and Local Opposition

    Rio Tinto is revising the estimated capital cost of its contentious Jadar lithium project in Serbia after it was designated one of the European Commission’s 13 strategic critical materials projects under the Critical Raw Materials Act (CRMA). Chad Blewitt, managing director of the Jadar mine, confirmed the update in an interview with Reuters on Wednesday.

    The project, initially valued at over €2.55 billion ($2.91 billion), is being recalculated to reflect EU environmental and human rights standards tied to its strategic status. “That will be reflected in the final capital cost,” Blewitt said, noting that no revised figure or timeline would be shared until the company secures a field exploitation licence.

    The Jadar project was halted in 2022 after mass protests over environmental concerns led the Serbian government to revoke Rio Tinto’s exploration permits. However, the Constitutional Court reinstated the licences in 2023, allowing the Anglo-Australian miner to resume planning.

    If realized, the mine could meet 90% of Europe’s current lithium demand, playing a central role in the continent’s green energy and digital transformation strategies. Despite this, local opposition remains strong, with activists threatening fresh protests and transport blockades if construction proceeds.

    “Whatever happens next will involve multiple stages of scrutiny and public consultation,” Blewitt emphasized, adding that the project could position Serbia as a pivotal supplier in Europe’s lithium supply chain.

    Rio Tinto is one of the few global mining giants heavily investing in lithium amid a market downturn. Its $6.7 billion acquisition of U.S.-based Arcadium Lithium and investments exceeding $1 billion in Chile signal a long-term bet on EV battery metals. While current lithium prices are depressed due to supply gluts, demand forecasts remain optimistic heading into the next decade.