Rio Tinto expands solar capacity at Kennecott with tellurium-linked panels

Rio Tinto, Solar

Rio Tinto expands solar capacity at Kennecott by adding 25MW of new generation at its Utah copper site. Rio Tinto expands solar capacity at Kennecott on top of a 5MW solar plant completed in 2023. As a result, Rio Tinto expands solar capacity at Kennecott to a total of 30MW, targeting a 6% cut in Scope 2 emissions.

The new solar build started in late 2024 and reached completion in October before it energized in December. Meanwhile, the project ties decarbonization to local byproduct value. The solar plant uses about 71,000 panels that incorporate tellurium produced at Kennecott during copper refining.

How the Kennecott solar project reduces Scope 2 emissions and power risk

The Kennecott solar expansion targets electricity-related emissions that sit in Scope 2 accounting. Therefore, a 30MW on-site solar asset can shave grid exposure and improve emissions intensity. However, solar output varies by season and time of day, so Kennecott still needs grid power or firming solutions for round-the-clock operations.

The construction timeline also shows industrial renewables moving from pilot scale to repeatable deployments. Meanwhile, miners increasingly prioritize projects that deliver measurable emissions cuts without disrupting throughput. This approach supports customer demands for lower-carbon copper supply chains.

Why tellurium matters for photovoltaics and byproduct monetization

Tellurium turns a refining byproduct into a strategic input for thin-film solar technology. As a result, Kennecott links copper refining to downstream clean-energy manufacturing. The material flows from Kennecott to Canadian firm 5N Plus for thin-film semiconductor materials and then to US firm First Solar for panel manufacturing.

This loop strengthens a North American critical materials chain around solar components. However, byproduct markets remain small and price sensitive, so long-term offtake and qualification matter. Therefore, integrating tellurium into a captive use case at the mine site can improve resilience and visibility for both producers and buyers.

The Metalnomist Commentary

This project signals a smarter decarbonization play that also upgrades byproduct strategy. However, the real advantage comes if Rio Tinto pairs renewables with reliability tools like storage and demand management. Mines that connect emissions cuts to critical-material loops will win premium customers.

Rio Tinto Kennecott wind VPPA secures 78.5MW for Utah copper decarbonization

Kennecott

The Rio Tinto Kennecott wind VPPA expands renewable sourcing for copper production. Rio Tinto signed a 15-year renewable energy supply agreement with TerraGen for its Kennecott copper mine. The Rio Tinto Kennecott wind VPPA covers 78.5MW of renewable power. Therefore, Kennecott copper mine decarbonization moves closer to execution.

TerraGen will deliver supply from the Monte Cristo I wind farm. The project totals 238.5MW in Hidalgo County and began commercial operations this week. Meanwhile, miners are shifting to long-term renewable contracts to manage carbon exposure. As a result, VPPAs are becoming a mainstream tool for metals producers.

TerraGen wind output supports a 15-year renewable energy supply agreement

The VPPA ties Kennecott’s load to wind generation attributes. Rio Tinto will source 78.5MW from the Monte Cristo I asset. However, a VPPA settles financially and does not physically deliver electrons to Utah. Therefore, the contract still supports emissions accounting through renewable attributes.

This structure can hedge power pricing and reduce reported emissions intensity. It can also align with customer demands for low-carbon copper. Meanwhile, copper buyers are tightening Scope 3 expectations across supply chains. As a result, renewable contracts can improve offtake competitiveness.

Kennecott adds solar capacity alongside wind procurement

Kennecott is building a broader clean energy portfolio. Rio Tinto installed a 5MW solar plant in 2023. It is also finishing a 25MW solar plant. Therefore, the Rio Tinto Kennecott wind VPPA complements on-site generation.

Kennecott operates integrated downstream infrastructure beyond the mine. The site includes a concentrator, smelter, refinery, and logistics assets. Meanwhile, these assets drive large, steady electricity demand. As a result, renewable contracting can support decarbonization across the full copper value chain.

The Metalnomist Commentary

Integrated copper sites win when they decarbonize smelting and refining, not only mining. Meanwhile, VPPAs offer speed, but they do not fix local grid constraints. Therefore, Rio Tinto should pair contracts with operational efficiency and on-site flexibility.

Rio Tinto signs new wind deal for Kennecott to lock in 78.5MW renewable power via VPPA

Rio Tinto, Australia

Rio Tinto signs new wind deal for Kennecott to expand renewable power coverage for its Utah copper operations. Rio Tinto signed a 15-year renewable energy supply agreement with Terra-Gen for the Kennecott copper mine near Salt Lake City. Rio Tinto signs new wind deal for Kennecott to secure 78.5MW of renewable energy from TerraGen’s Monte Cristo I wind farm in Texas. Therefore, the miner is tightening the link between low-carbon electricity and copper supply reliability.

TerraGen will supply power from the 238.5MW Monte Cristo I wind farm in Hidalgo County, Texas. The wind facility began commercial operations this week. Meanwhile, Rio Tinto structured the purchase through a virtual power purchase agreement. As a result, the company can decarbonize its electricity footprint without requiring direct physical delivery.

VPPA structure extends the Kennecott decarbonization roadmap

Rio Tinto signs new wind deal for Kennecott as part of a broader decarbonization push at the site. The company installed a 5MW solar plant in 2023 and is close to finishing a 25MW solar plant. Meanwhile, the VPPA adds longer-term renewable coverage and price visibility. Therefore, Kennecott’s energy strategy is moving from pilot assets to portfolio-style procurement.

This approach is increasingly common for energy-intensive metals. VPPAs can hedge power exposure and reduce reported emissions intensity. However, they require careful accounting and contract management. As a result, the structure matters as much as the headline megawatts.

Integrated mining, smelting, and refining makes energy a strategic lever

Kennecott is an integrated copper complex, not only a mine. The site includes a concentrator, smelter, and refinery, plus transport and storage infrastructure. Meanwhile, electricity and heat costs influence operating margins across the chain. Therefore, renewable procurement can support both decarbonization targets and resilience during power market volatility.

Copper buyers are also tightening sustainability requirements. Lower-carbon power can help miners defend market access and premium contracts. However, the benefits depend on consistent operations and transparent emissions reporting. As a result, Rio Tinto signs new wind deal for Kennecott with both cost and customer strategy in mind.

The Metalnomist Commentary

Copper is becoming an electricity story as much as a mining story. Meanwhile, integrated smelting sites face greater scrutiny on Scope 2 emissions. Therefore, long-dated VPPAs will keep spreading across the copper industry as customers demand verified low-carbon supply.

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.

5N Plus Poised for Increased Tellurium Orders from First Solar Amid China Export Controls

5N Plus

US Solar Panel Giant May Boost Spot Demand as 5N Plus Expands Non-Chinese Supply and Space Solar Capacity

5N Plus Expects Surge in Tellurium Spot Sales from First Solar

Canadian semiconductor materials producer 5N Plus anticipates additional spot tellurium orders from US-based solar panel leader First Solar, as the latter moves to diversify its supply chain away from China. The shift comes after Beijing imposed new export controls on tellurium, following similar restrictions on gallium and germanium.

First Solar uses cadmium telluride (CdTe) in its thin-film solar panels and partners with 5N Plus to refine tellurium by-product sourced from Rio Tinto’s Kennecott mine in Utah. 5N Plus already has a minimum-volume supply agreement, which was increased by 50% for the next two years, effectively tripling the contract volume compared to 2022.

According to CEO Gervais Jacques, First Solar is “most likely to request more than the minimum,” signaling robust demand as the U.S. seeks to reduce reliance on Chinese critical minerals.

5N Plus Expands Non-Chinese Supply Chains and Space Solar Production

While First Solar evaluates potential disruptions from China’s export policy, 5N Plus has strengthened sourcing of key materials. It procures germanium from Europe and Canada, while maintaining a stable bismuth supply outside of China. These measures are part of a broader strategy to insulate the company from geopolitical supply risks.

Additionally, 5N Plus is scaling up its space solar division, which manufactures advanced germanium substrates used in high-efficiency satellite applications. These substrates are layered with materials such as AlInGaP, AlGaAs, and InGaAs. The company expects this business to grow by 30% in 2024, with capacity expansions ongoing through Q4.

Bismuth Chemicals to See Steady Demand from Health Sector

Beyond semiconductors, 5N Plus projects continued bismuth demand growth driven by pharmaceutical and healthcare markets, in line with global GDP trends. The company’s Lübeck, Germany facility is positioned to support this growth, supplying high-purity bismuth chemicals used in medical applications.