Rio Tinto AP60 Expansion Lifts Quebec Low-Carbon Aluminium Capacity

Rio tinto

Rio Tinto AP60 expansion will add 160,000 t/yr of aluminium capacity at the company’s Quebec smelter, strengthening Canada’s position as a major source of lower-emissions metal. The $1.5bn project began start-up in March and is expected to be completed by the end of 2026.

Rio Tinto AP60 expansion will lift the smelter’s nameplate capacity to 220,000 t/yr. The additional metal will target transportation, construction, electrical and consumer goods markets.

Rio Tinto AP60 expansion is strategically important because aluminium buyers are increasingly comparing suppliers on carbon intensity as well as price and availability. Quebec’s power system gives Rio Tinto a strong base for producing lower-emissions primary metal.

The company is also developing recycling and new smelting technology at the Arvida complex, creating a broader platform that combines primary production, secondary aluminium and future low-emission electrolysis.

AP60 Capacity Supports North American Aluminium Supply

The additional AP60 capacity will partly offset the closure of older potlines scheduled for June. This allows Rio Tinto to modernise its production base while maintaining regional supply.

Replacing older capacity with newer smelting technology can improve energy efficiency, productivity and emissions performance. It also supports long-term competitiveness in markets where customers are under pressure to reduce supply-chain carbon.

Transportation is an important demand sector because automakers continue to use aluminium for lightweighting. Electrical applications are also becoming more significant as grids, renewable projects and electrification expand.

Construction and consumer goods provide additional demand diversification. This reduces dependence on any single end market and strengthens the commercial case for higher-capacity production.

The expansion also supports North American supply security. Additional Canadian output gives US and regional manufacturers access to primary aluminium from an established trade partner.

Recycling and Elysis Add a Second Decarbonisation Route

Rio Tinto plans an aluminium recycling centre at the same Arvida complex. This adds secondary metal capability alongside primary smelting.

The combination is important because future aluminium supply will increasingly depend on blending primary and recycled metal. Primary production provides chemistry control and volume, while recycling lowers energy use and embedded emissions.

Canada is also supporting a separate Quebec demonstration plant for Elysis aluminium electrolysis technology with $100mn in government funding.

Elysis was developed with Alcoa and is designed to eliminate direct greenhouse gas emissions from the conventional aluminium smelting process. If successfully commercialised, the technology could materially change the emissions profile of primary aluminium.

The three elements — AP60 expansion, recycling and Elysis — show a broader industrial strategy. Rio Tinto is not simply increasing aluminium output; it is building a more flexible and lower-carbon production system.

That matters as customers increasingly demand traceable aluminium with lower emissions intensity. Producers able to combine scale, renewable power, recycling and advanced smelting technology could gain a stronger competitive position.

The Metalnomist Commentary

Rio Tinto’s Quebec strategy shows where aluminium competition is heading: more capacity, more recycling and lower smelting emissions. The advantage will increasingly belong to producers that can deliver both physical metal and credible carbon reduction.

Argentina Lithium Growth Could Challenge Chile’s Regional Lead

Argentina Lithium

Argentina lithium growth could reshape Latin America’s lithium map over the next decade as new projects advance under more investor-friendly rules. Argentina is expected to match Chile’s lithium output by 2035, with some industry participants arguing it could overtake Chile even earlier.

Argentina lithium growth is being supported by faster permitting, large brine resources and stronger investment incentives. By contrast, Chile’s lithium expansion remains constrained by restrictive legislation, lengthy approval processes and uncertainty around new project development.

Argentina lithium growth is strategically important because lithium remains central to electric vehicles, energy storage and battery supply chains. Global buyers want large-scale, politically stable and western hemisphere supply outside more exposed jurisdictions.

Chile remains the region’s largest producer today. However, its future output growth depends heavily on existing producers and slow-moving new projects, while Argentina has a deeper pipeline of advanced developments.

Chile’s Lithium Policy Slows New Supply

Chile has long been Latin America’s dominant lithium producer, but its regulatory system is limiting new investment. Lithium remains non-concessionable and is still treated under legislation linked to nuclear materials.

Companies seeking to extract lithium in Chile must apply for special mining contracts. These contracts are granted through public bidding processes that can be lengthy, bureaucratic and uncertain.

This creates a major exploration problem. Companies may be reluctant to explore land if they cannot be confident of later securing extraction rights.

Chile’s national lithium strategy also requires all new projects to use direct lithium extraction. DLE is viewed as more environmentally friendly than traditional evaporation ponds, but it creates technical and cost challenges.

Each DLE process must be designed around the specific chemistry of each brine resource. That means technology used at one salar cannot simply be copied at another.

This raises development costs and lengthens project timelines. Industry participants estimate that DLE projects may require investment of up to $44,000 per tonne of lithium carbonate equivalent, compared with about $26,000/t for evaporation projects.

Chile’s new supply pipeline is therefore moving slowly. The first major new project, Rio Tinto’s Maricunga, is expected only by the end of 2030, with another new project expected in 2032.

Until then, Chile may rely mainly on capacity increases from existing producers. That could limit its ability to respond to rising lithium demand if Argentina’s project pipeline accelerates.

Argentina’s Rigi Regime Attracts Lithium Capital

Argentina is moving in the opposite direction. Its government has streamlined licensing and introduced the Rigi incentive regime for large investments.

Rigi provides tax exemptions, import-export benefits and legal protections for approved projects. It also allows companies to settle certain disputes in courts outside Argentina, improving investor confidence.

Ten lithium projects have already applied to Rigi, with three approved. The programme has become a major signal to international investors seeking policy stability and faster project execution.

Argentina now has more than 60 active lithium projects and seven producing assets, the most in Latin America. Two new developments are expected to come on line this year, lifting projected output to 159,000t of lithium carbonate equivalent.

That remains below Chile’s 305,000t in 2024. However, Argentina has more than 20 projects in advanced stages, including eight close to production.

Argentina’s mining ministry expects output to reach 583,000 t/yr of lithium carbonate equivalent by 2035. That would put the country in position to match or overtake Chile if Chile’s permitting regime does not change.

The investment logic is clear. Argentina offers large brine resources, a more open policy framework and exposure to western hemisphere supply chains. That combination is increasingly attractive to battery makers, automakers and mining companies.

Chile still has enormous lithium potential. But potential alone does not create supply. Without faster approvals and clearer rules, Chile risks losing regional leadership to Argentina.

For the lithium market, this shift matters. Argentina’s rise could increase competition, diversify supply and give buyers more options in South America. It could also make Latin America’s lithium growth less dependent on Chile’s policy choices.

The Metalnomist Commentary

Argentina’s lithium advantage is not only geological; it is regulatory. Chile still has world-class resources, but Argentina is turning policy speed into supply-chain momentum.

Argentina Lithium Growth Could Challenge Chile’s Regional Lead

Argentina Lithium

Argentina lithium growth could reshape Latin America’s lithium map over the next decade as new projects advance under more investor-friendly rules. Argentina is expected to match Chile’s lithium output by 2035, with some industry participants arguing it could overtake Chile even earlier.

Argentina lithium growth is being supported by faster permitting, large brine resources and stronger investment incentives. By contrast, Chile’s lithium expansion remains constrained by restrictive legislation, lengthy approval processes and uncertainty around new project development.

Argentina lithium growth is strategically important because lithium remains central to electric vehicles, energy storage and battery supply chains. Global buyers want large-scale, politically stable and western hemisphere supply outside more exposed jurisdictions.

Chile remains the region’s largest producer today. However, its future output growth depends heavily on existing producers and slow-moving new projects, while Argentina has a deeper pipeline of advanced developments.

Chile’s Lithium Policy Slows New Supply

Chile has long been Latin America’s dominant lithium producer, but its regulatory system is limiting new investment. Lithium remains non-concessionable and is still treated under legislation linked to nuclear materials.

Companies seeking to extract lithium in Chile must apply for special mining contracts. These contracts are granted through public bidding processes that can be lengthy, bureaucratic and uncertain.

This creates a major exploration problem. Companies may be reluctant to explore land if they cannot be confident of later securing extraction rights.

Chile’s national lithium strategy also requires all new projects to use direct lithium extraction. DLE is viewed as more environmentally friendly than traditional evaporation ponds, but it creates technical and cost challenges.

Each DLE process must be designed around the specific chemistry of each brine resource. That means technology used at one salar cannot simply be copied at another.

This raises development costs and lengthens project timelines. Industry participants estimate that DLE projects may require investment of up to $44,000 per tonne of lithium carbonate equivalent, compared with about $26,000/t for evaporation projects.

Chile’s new supply pipeline is therefore moving slowly. The first major new project, Rio Tinto’s Maricunga, is expected only by the end of 2030, with another new project expected in 2032.

Until then, Chile may rely mainly on capacity increases from existing producers. That could limit its ability to respond to rising lithium demand if Argentina’s project pipeline accelerates.

Argentina’s Rigi Regime Attracts Lithium Capital

Argentina is moving in the opposite direction. Its government has streamlined licensing and introduced the Rigi incentive regime for large investments.

Rigi provides tax exemptions, import-export benefits and legal protections for approved projects. It also allows companies to settle certain disputes in courts outside Argentina, improving investor confidence.

Ten lithium projects have already applied to Rigi, with three approved. The programme has become a major signal to international investors seeking policy stability and faster project execution.

Argentina now has more than 60 active lithium projects and seven producing assets, the most in Latin America. Two new developments are expected to come on line this year, lifting projected output to 159,000t of lithium carbonate equivalent.

That remains below Chile’s 305,000t in 2024. However, Argentina has more than 20 projects in advanced stages, including eight close to production.

Argentina’s mining ministry expects output to reach 583,000 t/yr of lithium carbonate equivalent by 2035. That would put the country in position to match or overtake Chile if Chile’s permitting regime does not change.

The investment logic is clear. Argentina offers large brine resources, a more open policy framework and exposure to western hemisphere supply chains. That combination is increasingly attractive to battery makers, automakers and mining companies.

Chile still has enormous lithium potential. But potential alone does not create supply. Without faster approvals and clearer rules, Chile risks losing regional leadership to Argentina.

For the lithium market, this shift matters. Argentina’s rise could increase competition, diversify supply and give buyers more options in South America. It could also make Latin America’s lithium growth less dependent on Chile’s policy choices.

The Metalnomist Commentary

Argentina’s lithium advantage is not only geological; it is regulatory. Chile still has world-class resources, but Argentina is turning policy speed into supply-chain momentum.

Rio Tinto Copper Output Rises as Oyu Tolgoi Offsets Lithium Weakness

Rio Tinto

Rio Tinto copper output increased in the first quarter as stronger production from the Oyu Tolgoi mine in Mongolia lifted the group’s global copper performance. The UK-Australian miner produced 229,000t of consolidated copper in January-March, up 9% from a year earlier.

Rio Tinto copper output growth was driven mainly by copper in concentrates from Oyu Tolgoi, where production rose by 56% to 102,000t. The ramp-up helped offset weaker concentrate output at Escondida and lower refined copper production at Kennecott.

The first-quarter result shows the changing shape of Rio Tinto’s portfolio. Copper is gaining strategic weight as electrification, grids and industrial infrastructure support long-term demand, while lithium remains more exposed to weather, ramp-up timing and early-stage project execution.

At the same time, Rio Tinto reported higher alumina production but weaker bauxite and lithium output. Heavy rainfall and cyclone-related disruptions affected Australian bauxite mines, while weather events in Argentina reduced lithium carbonate equivalent production.

Copper Growth Strengthens Despite Mixed Mine Performance

Oyu Tolgoi was the strongest contributor to Rio Tinto copper output in the first quarter. Its continued ramp-up in Mongolia lifted copper in concentrates production to 102,000t, reinforcing the mine’s role as one of the group’s most important growth assets.

The result matters because large copper projects are increasingly difficult to bring into stable production. Oyu Tolgoi gives Rio Tinto a major long-life copper source at a time when global mine supply remains vulnerable to grades, permitting delays and operational disruptions.

Escondida delivered a mixed quarter. Refined copper output at the Chilean operation rose by 21% to 16,000t, but concentrates production fell by 14% to 77,000t.

Kennecott in the US was weaker. Refined copper production fell by 20% to 34,000t because of lower anode inventories after unplanned smelter maintenance and reduced concentrator throughput caused by geotechnical constraints.

Rio Tinto kept its full-year copper production guidance unchanged at 800,000-870,000t. This suggests the company sees first-quarter disruptions as manageable within its broader 2026 plan.

The company also began drilling at the Resolution Copper project in Arizona after completing the land exchange in March. Resolution remains strategically important because it could become a major US copper source if development advances.

Rio Tinto copper output therefore carries both short-term and long-term significance. Oyu Tolgoi is already lifting production, while Resolution represents future supply optionality in a market increasingly focused on domestic and allied copper sources.

Lithium Falls as Weather Disrupts Argentina Operations

Rio Tinto’s lithium performance weakened sharply in the first quarter. Attributable lithium carbonate equivalent production fell by 26% on the year to 12,700t.

The decline was caused by heavy rainfall and weather events that disrupted operations at Olaroz and Fenix in Argentina. These disruptions show that lithium brine and carbonate operations remain sensitive to weather, water balance and site logistics.

The continued ramp-up at the Rincón starter plant partly offset the production impact. Rincón is important for Rio Tinto’s lithium strategy because it supports the company’s expansion into battery materials.

Rio Tinto maintained its 2026 LCE production guidance at 61,000-64,000t. First production from Fenix 1B and Sal de Vida remains on track for the second half of 2026.

The aluminium chain also showed mixed results. Primary aluminium output rose by 1% on the year to 835,000t, but fell by 2% from the previous quarter.

Alumina production increased by 6% to 2.04mn t, while bauxite production fell by 11% to 13.28mn t. Heavy rainfall at Weipa in Queensland and cyclone-related shutdowns at Weipa and Gove reduced bauxite output.

Recycled aluminium production also fell by 8% to 61,000t. Rio Tinto kept 2026 guidance unchanged for primary aluminium, alumina and bauxite, indicating confidence in recovery through the year.

The first-quarter data show a portfolio with different operating pressures. Copper is benefiting from major mine ramp-up, lithium is facing weather disruption, and aluminium raw materials are exposed to Australian climate events.

The Metalnomist Commentary

Rio Tinto’s first quarter shows why diversified miners need both growth assets and operational resilience. Oyu Tolgoi is strengthening Rio Tinto copper output, but weather-linked lithium and bauxite disruptions show that energy-transition supply chains remain exposed to physical operating risk.

Rio Tinto Argentina Lithium Incentives Expand Fenix Growth Plan

Rio Tinto Argentina Lithium

Rio Tinto Argentina lithium incentives have strengthened again after Argentina approved the company’s $530 million expansion of the Fenix lithium project under its large-investment incentive regime. The approval marks Rio Tinto’s second lithium project accepted under Rigi, reinforcing Argentina’s role in the group’s battery materials strategy.

The Fenix expansion is expected to add 9,500 t/yr of lithium carbonate equivalent production capacity. Once completed, total output from the project is expected to reach around 41,500 t/yr.

Rio Tinto Argentina lithium incentives also support the company’s broader target to produce 200,000 t/yr of lithium carbonate equivalent by 2028. Most of that output is expected to come from Argentina, where Rio Tinto significantly expanded its position through the acquisition of Arcadium Lithium assets.

Fenix Expansion Adds Capacity to a Long-Running Lithium Asset

The Fenix project has operated in Catamarca province since 1997 and currently has nameplate capacity of 32,000 t/yr. The approved expansion adds new production to an established asset, reducing some of the execution risk compared with a fully greenfield project.

Argentina’s economy minister Luis Caputo said the new build would add $165 million to Fenix’s annual revenue from lithium carbonate equivalent sales. This gives the expansion clear commercial weight at a time when lithium producers are prioritising scale, cost control, and project discipline.

The approval also follows Rio Tinto’s earlier Rigi acceptance for Rincon. That $2.7 billion project is designed for 60,000 t/yr of lithium output and is expected to become the company’s future flagship lithium operation in Argentina.

Rigi Gives Argentina a Stronger Lithium Investment Platform

Rigi has become a central part of Argentina’s strategy to attract large-scale mining investment. The regime grants exemptions from value-added and import-export taxes, offers legal protections, and guarantees 30 years of regulatory stability.

That stability is especially important in lithium, where projects require large capital commitments, long permitting timelines, and confidence in tax and export rules. For Rio Tinto, Rigi helped support the investment case for deeper exposure to Argentina’s lithium sector.

The company’s former chief executive Jakob Stausholm said Rigi was one of the main reasons behind his confidence in acquiring Arcadium Lithium’s Argentine assets. That shows how fiscal and legal stability can directly influence global mining capital allocation.

The Metalnomist Commentary

Argentina is using Rigi to convert lithium resource potential into project commitments from major global miners. Rio Tinto’s second approval shows that policy stability can become as important as geology when battery metal producers decide where to invest.

Low-Carbon Aluminum Data Center Cables Advance Through Rio Tinto and Prysmian Trial

Prysmian low carbon aluminum

Low-carbon aluminum data center cables are moving from concept toward industrial validation as Rio Tinto and Prysmian complete a trial using cleaner aluminum feedstock. The partnership links primary aluminum production, cable manufacturing, and fast-growing electricity demand from digital infrastructure.

Rio Tinto produced aluminum rod for the trial using a blend of hydro-powered aluminum from its Alma smelter in Quebec and aluminum made through Elysis technology. Prysmian then used the material pathway to test low-carbon aluminum cable production for data center applications.

The trial forms part of a five-year supply agreement signed in 2023 between Rio Tinto and Prysmian. That deal focuses on low-carbon aluminum made with renewable hydropower from Rio Tinto’s Canadian operations.

Data Center Growth Raises Demand for Cleaner Conductors

Low-carbon aluminum data center cables matter because power infrastructure is becoming a larger part of the data center supply chain. Data centers require large volumes of cable, busbar, grid equipment, and electrical distribution systems as operators expand capacity for cloud computing and artificial intelligence.

Aluminum offers a strategic balance between conductivity, weight, cost, and availability. For cable manufacturers, lower-carbon aluminum can help reduce the embedded emissions of electrical infrastructure without changing the core role of aluminum as a conductor material.

Prysmian’s involvement is important because cable producers sit close to the final customer. If data center owners increasingly ask for lower-carbon materials, cable manufacturers will need stable access to verified low-carbon aluminum supply.

Elysis Technology Remains Strategic but Not Yet Scaled

Elysis aluminum gives the trial a deeper industrial meaning. The Rio Tinto and Alcoa joint venture is developing an emissions-neutral smelting process that could reduce the carbon footprint of primary aluminum production.

However, Elysis aluminum remains in development and is not yet available in large production quantities. This limits near-term commercial impact but supports longer-term qualification work with downstream users such as Prysmian.

Rio Tinto’s hydro-powered Canadian aluminum provides the scalable base for the current supply relationship. Elysis material adds a future-facing technology layer that could become more important if industrial buyers push harder for lower-emission metals.

The Metalnomist Commentary

Low-carbon aluminum data center cables show how digital infrastructure is reshaping metals demand beyond chips and servers. The next competitive advantage may come from verified low-carbon supply chains for the electrical backbone behind data centers.

Kennecott Copper Mine Suspension Adds Pressure to Rio Tinto’s US Copper Chain

Kennecott Copper Mine

Kennecott copper mine operations have been suspended after a contractor died in an incident at Rio Tinto’s Utah project on 12 March. The company has halted all surface and underground mining work while authorities investigate, adding another disruption to one of the most important copper assets in the United States.

The suspension comes at a difficult time for Kennecott copper mine operations. Rio Tinto spent much of last year managing unstable ground conditions, low concentrate inventories, and repeated interruptions across the site’s processing chain. The company did not indicate whether concentrating, smelting, or refining operations had been halted.

Kennecott copper mine performance remains strategically important because the US copper supply chain has limited large-scale domestic mining and refining capacity. Any extended disruption at Kennecott could tighten raw material availability for the site’s downstream operations and reinforce concerns over ageing domestic copper assets.

Ageing Asset Faces Safety, Geotechnical, and Feedstock Constraints

Rio Tinto’s Kennecott project has already faced significant operational strain. Refined copper output fell by almost one-third last year to 134,000 tonnes after geotechnical setbacks and raw material shortages triggered several smelter shutdowns.

The latest suspension raises the risk of further pressure on mine feed availability. Even if smelting and refining continue, prolonged mining disruption could reduce concentrate flow and make it harder to stabilize the broader copper chain.

Kennecott’s challenges also show the structural difficulty of maintaining mature copper assets. Ageing mines often require more complex ground control, higher sustaining investment, and tighter operational discipline. When safety incidents, unstable ground, and low inventories overlap, production reliability becomes harder to protect.

Underground Expansion Remains Central to Rio Tinto’s Copper Strategy

Rio Tinto continues to invest in Kennecott despite the setbacks. The company completed installation of a 30MW solar power unit at the site in January, signalling that long-term modernization remains part of its plan for the Utah operation.

The bigger strategic focus is the underground build-out, including the North Rim Skarn project. Rio Tinto has been relying on this expansion to add about 250,000 tonnes per year of mining capacity and strengthen Kennecott’s future feed base.

The timeline has already slipped. The new section was originally expected to come online in 2024, before delays pushed first production to late 2025, with ramp-up now planned for this year. Successful execution will be critical if Rio Tinto wants to reduce Kennecott’s role as the weak link in its copper portfolio, especially after stronger production gains from Oyu Tolgoi in Mongolia lifted the company’s global copper output last year.

The Metalnomist Commentary

Kennecott’s latest suspension highlights the fragility of domestic copper supply when mature assets face safety and geotechnical pressure. For Rio Tinto, the North Rim Skarn ramp-up is no longer just an expansion project; it is central to restoring confidence in the US copper chain.

CATL Rio Tinto Partnership Targets Mining Electrification and Battery Circularity

CATL

CATL Rio Tinto partnership plans could accelerate electrification across Rio Tinto’s global mining operations as the metals sector looks for practical ways to cut emissions. The two companies have signed a non-binding agreement to explore cooperation in battery technologies, system integration, recycling, and new energy solutions.

The CATL Rio Tinto partnership connects one of the world’s largest battery producers with a major global supplier of iron ore, copper, aluminium, and lithium. This creates a direct link between upstream resource extraction and the battery systems needed to decarbonise mining fleets, rail, and industrial energy use.

Rio Tinto wants to develop a zero-carbon mining model with global demonstration value. CATL will support that goal through its battery technology, energy system expertise, and experience in large-scale electrification.

Battery Systems Move Deeper Into Mining Operations

Mining electrification is becoming a strategic priority because diesel-powered equipment remains a major source of operating emissions. Battery systems can support electric haul trucks, heavy equipment, rail locomotives, site power systems, and charging infrastructure.

The collaboration could help Rio Tinto improve operating efficiency while reducing carbon intensity. Electrified mining systems may also lower fuel exposure, improve maintenance economics, and support customers that increasingly demand lower-carbon raw materials.

The agreement also reflects a broader shift in mining procurement. Large miners are no longer only buying equipment; they are building partnerships around batteries, energy management, recycling, and circular material flows. This gives battery companies a larger role in mining’s industrial transition.

Critical Minerals Circularity Becomes a Strategic Link

The CATL Rio Tinto partnership will also explore business models for battery materials recycling and critical minerals circularity. This is important because mining electrification will create new demand for lithium, copper, nickel, graphite, rare earths, and other battery-linked materials.

Circularity can help reduce waste and strengthen supply security. If battery materials can be recovered and reused across mining operations, companies can reduce dependence on fresh raw material inputs and build more resilient supply chains.

CATL and BYD are increasingly targeting partnerships with major miners and energy companies. CATL and BYD have already signed agreements with BHP to develop battery solutions for mining equipment and railway locomotives, while BYD has also agreed to work with Aramco on electric and fuel cell vehicle technologies.

The Metalnomist Commentary

Mining electrification is becoming a new battleground for battery companies, miners, and equipment suppliers. The strategic winners will be those that can connect mineral supply, battery deployment, recycling, and low-carbon operations into one industrial ecosystem.

RBM Mineral Sands Expansion Extends Rio Tinto’s Zircon and Ilmenite Supply

Rio Tinto Blue Horizon

RBM mineral sands expansion approval gives Rio Tinto a longer supply runway for zircon and ilmenite from its Richards Bay Minerals operation in South Africa. The $473mn Zulti South project is designed to extend mined supply as ore grades and availability decline at the existing Zulti North lease area.

Rio Tinto owns 74pc of Richards Bay Minerals, while Blue Horizon holds 24pc. RBM currently operates four mines in the Zulti North lease area, alongside a mineral separation plant and smelting facility. Construction at Zulti South is expected to begin in the first quarter of 2026 and take around 30 months.

RBM mineral sands expansion is expected to support production from the fourth quarter of 2028. The project aims to extend RBM’s operations to 2050, giving the business a longer-term role in global mineral sands supply.

Zulti South Restarts After Earlier Security and Community Delays

The Zulti South project was originally approved in April 2019, but Rio Tinto later suspended development because of security and community issues. The new approval shows that the company is prepared to move forward after a long delay.

This history matters because mineral sands projects depend not only on geology and capital, but also on stable operating conditions. Community relations, security, permitting, logistics, and site reliability can determine whether high-quality deposits become dependable supply sources.

RBM mineral sands expansion also reflects the need to replace declining ore supply at Zulti North. As mature ore bodies deplete, producers must invest in new mining areas to maintain feedstock availability for separation, smelting, and downstream customers.

Zircon and Ilmenite Supply Supports Industrial and Titanium Markets

Zircon and ilmenite are important industrial minerals with strategic downstream uses. Zircon serves ceramics, refractories, foundry applications, and specialty industrial products. Ilmenite and rutile are key feedstocks for titanium dioxide production, which is widely used in pigments, paints, coatings, plastics, and paper.

Titanium dioxide feedstock also connects the mineral sands market to titanium metal supply chains. While pigment remains the dominant demand driver, titanium-bearing minerals ultimately support industries tied to aerospace, chemicals, energy, and advanced manufacturing.

Rio Tinto’s approval therefore strengthens a long-term feedstock position in a market where mine life, jurisdictional stability, and processing integration matter. The expansion gives RBM a clearer path to remain a major supplier of mineral sands into the middle of the century.

The Metalnomist Commentary

Rio Tinto’s Zulti South approval shows that mineral sands supply security depends on long-cycle mine replacement, not short-term price movements. The strategic value lies in extending zircon and ilmenite availability before mature deposits tighten the feedstock pipeline.

Tomago aluminium smelter power purchase agreement could keep Rio Tinto’s Australia output running

Australia, Rio Tinto

Australia is advancing a Tomago aluminium smelter power purchase agreement to keep operations running beyond 2028. Rio Tinto says power costs drive its long-term risk. As a result, the Tomago aluminium smelter power purchase agreement becomes a key test for industrial energy policy.

Fixed-price power deal ties support to capital spending

The federal government and New South Wales will work with Tomago Aluminium on the energy solution. Anthony Albanese said the plan centers on a fixed-price power purchase agreement. Meanwhile, the package includes a commitment to invest A$1bn over ten years.

Rio Tinto flagged closure risk as contracts expire

Rio Tinto warned in October that it could close Tomago when its current power contract ends in 2028. However, officials say a long-term agreement supports continued investment and jobs. The smelter produced 426,000 tonnes on a 100% basis in January–September 2025.

Australia framed the move as part of broader support for heavy industry under cost pressure. Tim Ayres defended industrial policy at Sydney Institute. Therefore, Tomago now sits alongside support discussions tied to Glencore and Nyrstar operations.

The Metalnomist Commentary

This Tomago aluminium smelter power purchase agreement signals how governments may underwrite energy-intensive metals capacity. However, the final terms will shape competitiveness versus imported aluminium. Therefore, investors should watch price indexing, duration, and decarbonisation conditions.

Rio Tinto 2026 production guidance signals steady aluminium and higher alumina

Rio Tinto

Rio Tinto 2026 production guidance sets 2026 targets for bauxite, alumina, and aluminium. Rio Tinto 2026 production guidance keeps aluminium steady while it lifts alumina output. The company targets 58–61mn t of bauxite, 7.6–8mn t of alumina, and 3.25–3.45mn t of aluminium. However, tailings limits and power contracts shape the real supply outlook.

Bauxite and alumina tighten around operational constraints

Bauxite volumes will dip slightly as Rio Tinto eases Weipa output after a strong 2025. The company ran the Amrun mine above capacity for most of 2025. As a result, the complex lifted production by 8pc in January–September. Meanwhile, Rio Tinto plans a 2027 expansion at Norman Creek.

Alumina guidance rises, but Rio Tinto will curb output at Yarwun refinery in late 2026. The company expects 7.6–8mn t of alumina in 2026. However, it will cut the 3mn t/yr refinery by 1.2mn t/yr from October 2026. The site supplied about 39pc of Rio Tinto’s alumina in July–September.

Aluminium stays steady as capex and power risks grow

Aluminium output stays flat, yet the company invests heavily in low-carbon capacity. Rio Tinto plans 3.25–3.45mn t of aluminium in 2026. Meanwhile, it will expand the AP60 smelter in Canada to 220,000 t/yr. The $1.1bn project will add 96 pots in early 2026.

Australian power risk now threatens stable smelting volumes. Rio Tinto must secure a new power deal with Hydro Tasmania for Bell Bay smelter by end-2026. However, high energy costs could also force a 2028 closure decision at Tomago smelter in New South Wales. Meanwhile, Rio Tinto pursues growth through an India low-carbon smelter plan with AMG Metal and Mining. Therefore, Rio Tinto 2026 production guidance will face execution risk beyond the headline ranges.

The Metalnomist Commentary

Rio Tinto’s stable aluminium guidance hides rising constraints across refining and smelting. However, the AP60 expansion signals confidence in premium, low-carbon metal demand. Therefore, investors should watch tailings solutions and power negotiations more than volume targets.

Rio Tinto battery swap trial advances low-emission mining

Rio Tinto Battery swap

Rio Tinto battery swap trial at Oyu Tolgoi signals a step-change in low-emission surface mining. The Rio Tinto battery swap trial, launched with China’s SPIC Qiyuan, will test electric haul trucks in demanding operating conditions. As a result, the Rio Tinto battery swap trial could become a blueprint for fleet decarbonisation across global open-pit operations.

Battery swap technology at Oyu Tolgoi

The Rio Tinto battery swap trial introduces electric haul trucks that can change batteries in under seven minutes. Battery swapping avoids long fast-charging pauses and keeps haul trucks in near-continuous operation. Over the past year, Rio Tinto and SPIC Qiyuan deployed eight 91t Tonly trucks, 13 800kWh batteries and a swap station. This infrastructure also includes a static charger and supporting grid connections at the Mongolian copper mine.

The trial will initially support tailings dam construction and topsoil movements at Oyu Tolgoi. These tasks provide repeatable cycles that are ideal for testing battery performance and swap logistics. Meanwhile, the project will generate real-world data on duty cycles, energy use and maintenance needs. That data will be critical for scaling battery swap systems into harsher and deeper mining environments.

Scaling battery swap across Rio Tinto’s global truck fleet

Rio Tinto sees its 700-truck global fleet as a major opportunity for wider battery swap deployment. If successful, the Rio Tinto battery swap trial could enable progressive replacement of diesel trucks in high-volume pits. Battery swap systems also align with grid-connected power strategies at large copper and iron ore operations. However, scaling will depend on local power availability, grid stability and renewable energy penetration.

Partnership with SPIC Qiyuan gives Rio Tinto access to China’s fast-moving battery and power electronics ecosystem. Chinese suppliers have already commercialised battery swap technology in logistics and urban transport fleets. Therefore, this mining-focused collaboration may accelerate standardisation of battery packs, swap stations and digital control platforms. That standardisation would reduce costs and support adoption by other global mining companies.

The Metalnomist Commentary

This trial confirms that decarbonising mining fleets is shifting from concept studies to large-scale pilots. Battery swap technology addresses one of mining’s hardest problems: keeping heavy haulage electrified without sacrificing productivity. If Oyu Tolgoi proves the model, expect copycat projects in copper, iron ore and coal, especially where grid power and renewables are available.

Gunnison Copper first cathode production boosts US copper supply ambitions

Gunnison Copper

Gunnison Copper first cathode production marks a key milestone for US domestic copper supply. The company produced its first copper cathode at the Johnson Camp Mine in Arizona in late August, ahead of schedule. As a result, the Gunnison Copper first cathode production strengthens US efforts to secure critical minerals for energy transition.

Early ramp-up at Johnson Camp Mine underpins new US copper source

Gunnison Copper first cathode production follows the successful start of solvent extraction and electrowinning operations. The company began running its SX plant and EW circuit in August, using run-of-mine ore from the Arizona site. Therefore, the project now moves from development into early ramp-up, which often proves pivotal for leaching projects.

The company expects to produce 25mn lbs per year of copper cathode, equal to about 11,300 tonnes. This scale does not rival major Chilean or Peruvian mines, yet it still matters for US niche supply. Meanwhile, the focus on finished cathode production rather than concentrates aligns with growing demand from North American smelters and fabricators.

Funding support highlights the broader strategic value of this new copper stream. The Johnson Camp Mine received backing from Nuton, a Rio Tinto venture focused on innovative copper technologies. In addition, the project secured $13.9mn in US Department of Energy tax credits in January to support domestic copper production.

Strategic context for US energy transition and critical minerals policy

The Gunnison Copper first cathode production arrives as policymakers push for more resilient US copper supply chains. Copper demand continues to rise across electric vehicles, renewable power and grid upgrades. Therefore, new SX–EW operations like Johnson Camp help reduce dependence on imported copper units.

Federal tax credits signal Washington’s willingness to support qualifying critical mineral projects. As a result, projects such as Johnson Camp can de-risk early capital phases and accelerate commissioning schedules. However, Gunnison Copper must still deliver consistent production performance, maintain environmental compliance and manage operating costs in Arizona’s competitive mining landscape.

For investors and copper buyers, the project offers modest but meaningful additional US cathode volumes. It may also showcase Nuton and Rio Tinto’s broader technology and partnership model for brownfield and mid-scale assets. Over time, similar projects could play a larger role in regional copper balance and contract pricing dynamics.

The Metalnomist Commentary

Gunnison Copper’s first cathode production at Johnson Camp illustrates how smaller US projects can still punch above their weight in policy terms. While volumes remain limited, the combination of Nuton funding and DOE tax support shows how technology and incentives now shape copper growth. Market participants should watch ramp-up performance closely, since SX–EW reliability will determine whether this asset becomes a durable pillar of US cathode supply.

Posco buys Hombre Muerto North lithium project for $62mn

Posco Lithium Project

Posco buys Hombre Muerto North lithium project for $62mn to expand its Argentine footprint. The move strengthens Posco’s brine-based LCE pipeline. As a result, Posco buys Hombre Muerto North lithium project at a strategic time.

Deal terms and project scale

Posco buys Hombre Muerto North lithium project from Lithium South under a non-binding pact. Posco Argentina agreed to acquire 100pc of the project for $62mn. The package includes five concessions and the lithium-rich brine resource. The agreement requires a 60-day due diligence period. Afterwards, both parties have 60 days to finalize a definitive deal. The project holds about 1.58mn t of brine-based LCE capacity. Forecast nameplate output stands at 15,600 t/yr.

Strategic fit in Hombre Muerto

Posco buys Hombre Muerto North lithium project near its existing Mariana asset. Posco Argentina operates the country’s only active lithium hydroxide facility. Therefore, integration could streamline brine processing and product conversion. Hombre Muerto is Argentina’s most coveted lithium basin. Rio Tinto’s Fenix project has produced lithium carbonate since the 1990s. Meanwhile, Posco’s local platform supports supply to battery value chains.

Steady drivers support the acquisition rationale. The basin offers proven brine chemistry and established logistics. The deal size suggests disciplined capital entry. However, completion depends on due diligence and final documentation. Lithium South disclosed the headline terms and timeline. Market participants will watch offtake and financing details.

The Metalnomist Commentary

This move consolidates Posco’s position in Argentina’s lithium triangle. The proximity to Mariana could reduce development risk and operating costs. Watch execution milestones and brine performance against the 15,600 t/yr target.

Argentina RIGI lithium project approval: Galan’s HMW secures $217mn under incentives

Galan Lithium

Argentina RIGI lithium project approval moved forward as Galan Lithium won the green light for Hombre Muerto West. Phase one secures $217mn under the program’s incentives. The brine project sits in Catamarca, a core Argentine lithium basin. Argentina RIGI lithium project approval underscores policy support for battery materials growth.

What the approval covers

Galan plans 4,000 t/yr LCE, with potential to lift output to 5,400 t/yr. The final product will be lithium chloride concentrate for battery production. RIGI reduces the corporate tax rate to 25pc and waives trade duties. It also eases currency rules and guarantees 30 years of legal stability. Therefore, Argentina RIGI lithium project approval improves bankability for new brine investments.

Winners and exclusions under RIGI

Rio Tinto’s Rincon won approval in May, targeting 60,000 t/yr by decade’s end. Planned investments approach $2.7bn for that project. However, the ministry rejected Ganfeng’s Mariana application, as the mine was inaugurated last year. Beyond mining, RIGI has supported a solar project, an oil pipeline, FLNG and a steel mill.

Argentina produced 18,000t of lithium last year, ranking fourth globally. Reserves total 4mn t, and resources stand at 23mn t. As a result, Argentina RIGI lithium project approval complements a deep pipeline of salars. Investors should watch ramp timing, permitting steps, and downstream offtake execution.

The Metalnomist Commentary

RIGI’s incentives directly target project finance risks for brine developers. Galan’s phased plan is modest yet catalytic for Catamarca. Execution on product quality and logistics will determine commercial momentum.

South32 Mozal aluminium smelter review signals power risk

South32

South32 Mozal aluminium smelter review addresses severe electricity uncertainty in Mozambique. South32 Mozal aluminium smelter review includes a likely value write-down. South32 Mozal aluminium smelter review could trigger a production halt by March 2026.

Mozal faces expiring power contracts with HCB and Eskom in March 2026. The 580,000 t/yr smelter remains exposed to unresolved tariff and supply terms. Therefore, management will reassess the 2025–26 production target and asset value.

Power contract risk and production outlook

Negotiations with HCB, Eskom, and the government have dragged for six years. As a result, South32 warns of a potential shutdown if no deal emerges. The company expects a partial write-down in 2024–25 financial results. Meanwhile, civil unrest forced guidance withdrawal in late 2024. South32 later reset guidance to 350,000 t on an equity basis. It produced 314,000 t in 2023–24 on the same basis.

Mozal’s review spans cash costs, curtailment plans, and capex timing. However, firm terms could still stabilize output through 2026. Immediate focus remains contract certainty and reliable hydropower allocation. Therefore, customers should prepare for supply variability and lead-time changes.

Market context and global smelter pressures

Aluminium smelters consume massive power and face volatile tariffs. Similar pressures hit Rio Tinto’s Tomago and Tiwai Point sites. Energy costs and grid constraints drive curtailments and policy requests. Consequently, price risk and carbon strategies shape smelter competitiveness.

Downstream buyers weigh premiums, logistics, and ESG footprints. Secure contracts can de-risk billet and slab availability. Therefore, procurement teams should diversify sources and hedge exposures now.

The Metalnomist Commentary

Power certainty will decide Mozal’s utilization and margin path. A bankable contract could avoid curtailment and protect regional employment. Watch tariff structure, indexation clauses, and contingency planning through 2026.

Rio Tinto to Test Titanium and Scandium Sorting Technology

Rio Tinto Titanium Mining

Rio Tinto Invests in Ore-Sorting Innovation

UK-Australian mining firm Rio Tinto will invest C$7.6mn ($5.6mn) to test a new ore-sorting technology at its Lac Tio mine in Quebec, Canada. The technology will sort ore based on titanium and scandium content directly at the source, reducing the amount of material transported to Rio Tinto’s iron and titanium metallurgical and critical minerals complex in Quebec.

The government of Quebec will contribute C$2.5mn ($1.8mn) through its support program for critical and strategic metals processing. This partnership underscores the region’s focus on developing advanced processing capacity for critical minerals.

Importance of Titanium and Scandium in Global Markets

Rio Tinto’s Quebec operations already produce titanium dioxide, covering 19% of global demand, alongside scandium oxide. Titanium dioxide is widely used in pigments and sunscreens, while scandium oxide plays a vital role in high-strength aluminum alloys for aircraft, as well as in electronic ceramics and glass.

As a result, the new sorting technology has the potential to increase efficiency, reduce carbon intensity, and strengthen North America’s position in critical minerals supply chains. By advancing titanium and scandium processing, Rio Tinto could also enhance the security of supply for industries facing rising demand.

The Metalnomist Commentary

Rio Tinto’s investment in titanium and scandium ore-sorting technology signals a clear shift toward greater efficiency and sustainability in critical minerals. By reducing transport needs and improving resource utilization, the project strengthens Quebec’s role as a global hub for strategic materials. This initiative also highlights the increasing importance of scandium, a rare but essential element for advanced manufacturing.

Rio Tinto Seeks Support for Australian Aluminium Smelter

Australian Al smelter

Power Costs Challenge Aluminium Operations

Rio Tinto is in talks with both the Australian federal government and the New South Wales (NSW) state government to secure support for its 600,000 t/yr Tomago aluminium smelter. The UK-Australian producer is renegotiating power purchase agreements to reduce costs, as energy expenses continue to rise across the state. Tomago accounts for about 12% of NSW’s total power use and plays a key role in grid stabilisation by adjusting production in line with electricity demand.

Officials confirmed discussions are underway, with NSW premier Chris Minns describing them as commercial negotiations. Industry and innovation minister Tim Ayers added that the government recognises Tomago’s strategic role but did not outline specific intervention measures. Meanwhile, energy minister Penny Sharpe acknowledged that soaring energy costs are straining many of the state’s energy-intensive industries.

Federal Incentives and Industry Outlook

Australia’s federal government has committed A$2bn ($1.3bn) under a low-emission production tax credit scheme, which will take effect in the 2028-29 fiscal year. The initiative aims to sustain aluminium production while encouraging cleaner processes. Rio Tinto has welcomed the scheme, calling it an important step toward maintaining Australia’s competitiveness in global aluminium markets.

Until the scheme is active, however, Rio Tinto must navigate high energy costs that threaten the viability of large-scale smelting operations. The company’s negotiations with power suppliers and government stakeholders will be critical in determining whether the Tomago smelter remains sustainable over the coming years.

The Metalnomist Commentary

Rio Tinto’s situation highlights the vulnerability of aluminium producers to volatile energy markets. While Australia’s tax credit scheme offers long-term relief, the immediate challenge is bridging the gap until 2028. The outcome at Tomago could set a precedent for how governments and power companies support energy-intensive industries under decarbonisation pressures.

EU Selects 13 Strategic Raw Material Projects Outside the Bloc

EU strategic raw material projects

EU Seeks to Diversify Critical Mineral Supply Chains

The European Commission has approved 13 strategic raw material projects outside the European Union, estimating a total capital investment of €5.5bn ($6.26bn) to bring them online. Chosen from 49 applications, these projects span Brazil, Canada, Greenland, Kazakhstan, Madagascar, Malawi, New Caledonia, Norway, Serbia, South Africa, the UK, Ukraine, and Zambia. Under the 2024 EU Raw Materials Act, the bloc aims by 2030 to domestically extract 10pc, process 40pc, and recycle 25pc of 17 strategic raw materials. Additionally, no single third country should supply more than 65pc of annual EU consumption.

Targeting Lithium, Nickel, Cobalt, Manganese, and Rare Earths

Ten of the approved projects focus on lithium, nickel, cobalt, manganese, and graphite, while two — Songwe Hill in Malawi and Zandkopsdrift in South Africa — will extract rare earth elements. Other notable initiatives include Rio Tinto’s Jadar lithium and boron project in Serbia, the Integrated Dumont Nickel Project in Canada, Kobaloni Energy’s cobalt processing in Zambia, and Balakhivka Graphite Deposit in Ukraine. The EU will provide coordinated support, including facilitating finance and connecting projects with potential off-takers. Industrial commissioner Stephane Sejourne emphasised that diversifying away from dependency on countries like China is critical, given current reliance levels exceeding 100pc in some refining and recycling segments.

The Metalnomist Commentary

The EU’s latest selections mark a significant expansion of its global strategic raw material network, signalling an urgent push to secure supplies ahead of the 2030 targets. While the €5.5bn investment is substantial, long-term success will depend on execution speed, environmental considerations, and stable geopolitical relations with host nations.

Talon Buys North Dakota Site for Nickel-Copper Processing Facility

Talon Metals

Former Coal Site to Host Critical Minerals Hub Backed by DOE Grant

Talon buys North Dakota site for nickel-copper processing, marking a strategic move to expand U.S.-based critical minerals infrastructure. The company announced it will acquire a 256-acre former coal mine site from Westmoreland Mining to establish its Beulah Minerals Processing Facility (BMPF). The new facility will process nickel and copper ore from the Tamarack JV—a Minnesota-based project Talon is developing with Rio Tinto.

The BMPF will help close a key gap in domestic nickel and copper refining, particularly for battery and energy transition supply chains. Talon plans to complete permitting by late 2026 and begin construction in 2027, aligning with U.S. strategic objectives to localize battery metal processing. The U.S. Department of Energy (DOE) previously awarded $114.8 million in funding to support the project, reinforcing its national significance.

Deal Structure Offers Flexible Payments and Future Delivery Incentives

The acquisition structure includes the transfer of property title in exchange for 15 million Talon share purchase options and a variable payment scheme. Talon will pay Westmoreland $0.50 per metric tonne of ore delivered to the BMPF, with total payments capped at $10 million. This model allows Talon to focus capital on facility development while ensuring Westmoreland benefits from future throughput.

As Talon buys North Dakota site for nickel-copper processing, it positions itself as a vertically integrated supplier of critical minerals for electric vehicles, grid storage, and defense technologies. The BMPF will also help reduce U.S. reliance on foreign refining capacity, particularly from China and Russia.

The Metalnomist Commentary

Talon’s strategic acquisition reflects the shift from coal to critical minerals in U.S. industrial land use. By leveraging DOE support and Rio Tinto’s upstream assets, the company strengthens its role in building a secure, domestic battery metals supply chain.