Rio Tinto plans green smelter

Global mining major Rio Tinto and India's AMG Metals & Minerals plan to set up the world's largest renewable-powered aluminium facility in the country at an investment of about $6 billion, said two people aware of the development.

- Rituraj Baruah & Utpal Bhaskar

The two companies have signed a memorandum of understanding (MoU) to jointly assess the feasibility of developing an integrated low-carbon aluminium project powered by renewable energy in India, a joint statement said.

This development assumes significance in the backdrop of several developed economies planning to impose carbon tax on imports, including the European Union's Carbon Border Adjustment Mechanism (CBAM), bringing in stringent norms.

The plan includes building a 1 million tonne per annum (mtpa) aluminium smelter and a 2 mtpa alumina refinery.

Together, the parties will consider the potential development of up to 1 million tonnes per annum (mtpa) primary aluminium smelter and 2 mtpa of alumina production, both powered by renewable wind and solar energy firmed by pumped hydro storage," the statement said.

"The development will comprise a study to evaluate a potential first phase 500,000 tonnes per annum primary aluminium smelter in a favourable location in India," it added.

The aluminium smelter will run entirely on 1.8 gigawatts (GW) of round-the-clock renewable power, said one of the two people mentioned above.

"While an investment of around $4 billion will be required for setting up the aluminium smelter, the alumina facility will require around $2 billion," the person added.