Can Australia’s Industrial Giants Find Salvation in Renewable Energy?

Rio Tinto, a leading mining company, has recently announced significant developments in the renewable energy sector in Australia. The company has secured contracts for the construction of the largest wind and solar farms in the country. However, the fate of its major manufacturing assets in Australia hinges on decisions by state and federal governments.

During an earnings call with investors, Rio Tinto’s CEO, Jakob Stausholm, emphasised the importance of obtaining competitive low carbon power to support the company’s investments in renewable energy. This move is crucial for ensuring the competitiveness of Rio Tinto’s smelters and refineries in the global market, which are currently powered by coal.

Transition to Low Carbon Solutions

Rio Tinto is taking proactive steps towards transitioning its operations to low carbon solutions. The company has initiated the construction of the largest solar farm in Australia, along with the development of the biggest wind farm. These projects, such as the 1.1 GW Upper Calliope solar project and the 1.4 GW Bungapan wind project, mark significant milestones in Rio Tinto’s sustainability efforts.

However, Stausholm highlighted the need for support from the Queensland Government and the Commonwealth to provide competitively priced firming power. Without this crucial element, Rio Tinto’s Pacific aluminium business, including key assets like the