TIDMRIO
RNS Number : 4597V
Rio Tinto PLC
01 December 2023
Notice to ASX/LSE
Rio Tinto and Giampaolo Group complete Matalco aluminium
recycling transaction
1 December 2023
LONDON - Rio Tinto and Giampaolo Group have completed a
transaction to form the Matalco joint venture, combining the
strengths of North America's largest primary and secondary
aluminium producers to meet the growing demand from manufacturers
for low carbon materials.
Following the receipt of all regulatory approvals, Rio Tinto has
acquired a 50% equity stake in the Matalco business from Giampaolo
Group for $700 million, subject to usual closing adjustments.
As Rio Tinto begins to market Matalco products, Rio Tinto will
be able to offer customers a full suite of aluminium products
including low-carbon primary aluminium made with hydropower and a
diverse portfolio of recycled aluminium solutions.
The investment will expand Rio Tinto's aluminium business in the
US, where demand for recycled aluminium is forecast to increase by
more than 70% from 2022 to 2032, driven by the transportation,
construction, and packaging sectors. Over the same period, global
recycled aluminium consumption is forecast to grow by more than
60%. [1]
Matalco will remain the operator of the joint venture's six
facilities in the United States and its Canadian site, which
together have a capacity to produce approximately 900,000 tonnes of
recycled aluminium per annum. Matalco will also continue to provide
closed-loop solutions to transform customers' scrap into
high-quality aluminium slab and billet. For the eight-month period
ending on 30 September 2023, Matalco produced approximately 400,000
tonnes of recycled aluminium, including 78% billet and 22% slab.
For the same period, Matalco generated an EBITDA of $165 per
tonne.
Over the last five years, Matalco more than doubled its
production capacity. Rio Tinto and Giampaolo Group will be working
together to assess opportunities to continue growing the Matalco
business and expand output, with an initial focus on North
America.
Rio Tinto Chief Executive Jakob Stausholm said: "Creating the
Matalco joint venture gives Rio Tinto a leading position in the
rapidly growing North American recycled aluminium market, allowing
us to offer a full complement of low-carbon recycled products. We
look forward to working in partnership with Giampaolo Group to
support the drive to net zero by expanding recycled production and
providing closed-loop recycling solutions to help our customers
reduce their carbon footprint."
Giampaolo Group CEO Chris Galifi said: "We are thrilled about
beginning our partnership with Rio Tinto, on forming a joint
venture for Matalco. This collaboration showcases our dedication to
continuously evolving our production of high-quality, low-carbon
aluminium. We look forward to continuing to grow with our new
partners while providing products that support sustainability."
About Rio Tinto Aluminium
Rio Tinto is a global leader in aluminium, with a large-scale,
vertically-integrated business: bauxite mines and alumina
refineries as well as smelters producing aluminium certified as
responsible. The Matalco joint venture continues Rio Tinto's
investment in building its supply of low carbon aluminium in North
America. Previous investments include $1.1 billion to expand the
use of its AP60 technology at its Arvida aluminium smelter in June
2023 and $29 million to establish new recycling capabilities at the
Arvida smelter in August 2022, both in the Saguenay-Lac-Saint-Jean
region of Quebec.
Rio Tinto is also working with the Governments of Canada and
Quebec towards a deployment of the ELYSIS(TM) zero carbon aluminium
smelting technology at its Saguenay-Lac-Saint-Jean facilities. With
the current development pathway, the ELYSIS joint venture between
Rio Tinto and Alcoa aims to have its technology available for
installation from 2024 and the production of larger volumes of
carbon-free aluminium approximately two years later.
About Giampaolo Group and Matalco
The Giampaolo Group was founded over 50 years ago in Toronto,
Ontario with a distinct focus in the recycling industry. Since
established, the organization has evolved into a multinational
integrated metal corporation. The Giampaolo Group focuses on
harvesting waste within the metal ecosystem by operating within the
recycling, manufacturing, and IT asset disposition space.
Established in 2005, Matalco is a leading producer of recycled
aluminium billet and slab. From the initial foray into 6XXX series
billet, Matalco currently produces a variety of 3XXX, 5XXX, 6XXX
and 7XXX billet and slab while offering both direct and tolled
products. Headquartered in Brampton, Ontario, the company has
solidified its position as a frontrunner in the industry. With
seven remelting and casting facilities spread across North America,
Matalco employs over 650 skilled professionals and operates an
extensive logistics network to service its customers. Its primary
focus is to supply upstream producers of extruded, forged, and
rolled products while relying on Triple M Metal to supply
recyclable raw material to provide a truly closed loop solution to
its customers.
Contacts
Please direct all enquiries to media.enquiries@riotinto.com
Media Relations, United Media Relations, Australia Media Relations,
Kingdom Americas
Matt Chambers
Matthew Klar M +61 433 525 739 Simon Letendre
M +44 7796 630 637 M +1 514 796 4973
Jesse Riseborough
David Outhwaite M +61 436 653 412 Malika Cherry
M +44 7787 597 493 M +1 418 592 7293
Alyesha Anderson
M +61 434 868 118 Vanessa Damha
M +1 514 715 2152
Michelle Lee
M +61 458 609 322
Investor Relations, United Investor Relations, Australia
Kingdom
Tom Gallop
Menno Sanderse M +61 439 353 948
M +44 7825 195 178
Amar Jambaa
David Ovington M +61 472 865 948
M +44 7920 010 978
Laura Brooks
M +44 7826 942 797
Rio Tinto plc Rio Tinto Limited
6 St James's Square Level 43, 120 Collins Street
London SW1Y 4AD Melbourne 3000
United Kingdom Australia
T +44 20 7781 2000 T +61 3 9283 3333
Registered in England Registered in Australia
No. 719885 ABN 96 004 458 404
This announcement is authorised for release to the market by
Andy Hodges, Rio Tinto's Group Company Secretary.
LEI: 213800YOEO5OQ72G2R82
Classification: 3.1 Additional regulated information required to
be disclosed under the laws of a Member State
riotinto.com
Category: Canada
[1] Source: CRU Aluminium Long Term Market Outlook, December
2022.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
JVEFZMGZVMKGFZM
(END) Dow Jones Newswires
December 01, 2023 12:30 ET (17:30 GMT)
Rio Tinto (LSE:0KWZ)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Rio Tinto (LSE:0KWZ)
Gráfica de Acción Histórica
De May 2023 a May 2024
