Rio Tinto PLC (LSE:ASX:RIO) outlined plans for new solar projects in Australia's Pilbara as part of new US$7.5bn investment plans to decarbonise its mining projects by 2030.
It also said it would invest up to US$3bn each year in metals to help the energy transition, where a 25% increase in demand is expected through to 2035.
Providing a progress update on its strategy to decarbonise and grow, the Anglo-Australian mining giant announced a US$600mln planned investment in solar power and battery storage in the Pilbara as part of the US$1.5bn it intends to invest in the next three years to cut emissions.
Funding has been signed off for two 100MW solar power facilities as well as 200MWh of on-grid battery storage in the Pilbara that are scheduled to start construction next year and be commissioned by 2026 with the aim of abating around 300,000 tonnes of CO2.
The US$7.5bn total investment over the coming eight years is being made to try and halve scope one and two emissions– those it produces directly and indirectly from purchased energy – with six “large scale” projects focused on renewable power, process heat, diesel, the ELYSIS aluminium smelting technology, alongside nature-based solutions.
Suggesting it wanted to remain “attractive” to investors, the FTSE 100-listed miner suggested it would not rush the investments and continued to focus on near-term work so as not to forfeit shareholder returns. But, it outlined that new power contracts are needed if its aluminium business is to meet emissions targets.
"Meeting the incremental demand of the energy transition and ensuring local supplies of critical minerals globally deepens our relevance in the world and provides new opportunities. We are working hard to decarbonise our assets and products, as we invest to grow in materials needed for the energy transition,” commented chief executive Jakob Stausholm.
“From evolving our culture, to operational improvements, a different approach on cultural heritage, and technology breakthroughs to address climate change and a changing customer environment, we are seeing early results that give us conviction we have the right objectives, the right team, and the right strategy.”