Canadian fed grants $193m to modernise two aluminium smelters

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With Canada's Industry Minister Mélanie Joly having announced a $193-million investment for the aluminium sector under the Strategic Response Fund last week, federal department Innovation, Science and Economic Development Canada (ISED) says the two targeted projects will help maintain about 6 000 full-time jobs in Québec and across Canada, support 65 co-op student placements and strengthen collaborations with Canadian research institutions, post-secondary institutions and small- and medium-sized enterprises.
The first investment comprises $164-million for Rio Tinto's aluminium value chain in Saguenay–Lac-Saint-Jean as part of a $818-million strategy to strengthen production capacity and decarbonise the diversified miner's regional operations.
Rio plans to construct a new billet casting centre at the Alma smelter to support the production of value-added aluminium products and modernise anode baking furnaces at the Grande-Baie smelter through major infrastructure upgrades and equipment refurbishment.
The second investment that Joly allocated for support is that of Aluminerie Alouette. About $28-million will go to supporting the company's $135-million project to modernise and optimise its electrolysis operations.
These technological improvements will directly target energy performance, industrial competitiveness and the reduction of greenhouse-gas (GHG) emissions.
"By investing in transformational, emissions-reducing projects like Alouette's, we are increasing Canada's global competitiveness in the aluminium sector. As global tariffs put pressure on Canadian industries and reshape international trade dynamics, the government of Canada is investing in critical mineral resources, modernising the aluminium supply chain and protecting well-paying Canadian jobs," ISED states.
Rio Tinto aluminium Atlantic operations MD Sébastien Ross welcomes the federal support for Canada's aluminium industry, particularly as Rio itself is celebrating 100 years of aluminium production in Saguenay–Lac-Saint-Jean, and in the context of increased international competition.
"This investment is a real driver for accelerating modernisation, growth and the decarbonisation of our operations in the region. It's helping reinforce our value chain, support quality jobs and create the necessary conditions for continuing to invest, innovate and produce here in Quebec and in Canada," Ross adds.
In turn, Aluminerie CEO and president Claude Gosselin comments that with the fund's support the company can continue to modernise its operations, including improving energy efficiency and reducing GHG emissions.
"As the largest smelter in the Americas, we are proud to generate significant economic benefits for Canada, notably through about 1 000 quality jobs and hundreds of millions of dollars in purchases of goods and services. In a geopolitical context where uncertainty remains high, the government's support strengthens investor confidence and allows us to keep investing toward a sustainable future," Gosselin says.
Rio is the largest producer of primary aluminium in Canada with its Canadian hub in Montréal. Rio employs about 4 300 people in Québec alone, with an estimated 14 000 employees across its aluminium and mining segments in Canada.
In turn, Aluminerie is the largest aluminium smelter in North America, producing about 633 000 t of primary aluminium every year.
Canada has nine primary aluminium smelters, with the majority being in Québec and one other in British Columbia.