(Reuters) -Rio Tinto on Thursday said it inked a memorandum of understanding (MOU) with India-based AMG Metals & Materials (AMG M&M) to assess the viability of a low-carbon aluminium project in the South Asian country.
The potential development could see up to 1 million tonnes per annum (mtpa) of primary aluminium smelting and 2 mtpa of alumina production, both energized by renewable wind and solar power, supported by pumped hydro storage, the global miner said.
The initial phase of the project would involve studying the possibility of a 500,000 tonnes per annum primary aluminium smelter at a “favourable” location in India, it added.
Rio Tinto did not disclose financial details of the deal.
AMG Metals & Materials is incorporated by Anil Chalamalasetty and Mahesh Kolli, the founders of Greenko Group, an India-based clean energy company.
As the demand for sustainable materials grows globally, AMG M&M will examine a firmed renewable energy solution with Greenko, while Rio Tinto will explore a commercial alumina solution, Rio said in its statement.
“This MOU could deliver much needed low-carbon metal at scale to propel decarbonization initiatives in global supply chains across auto, construction, consumer packaging and many more segments,” said Mahesh Kolli, group president of AMG M&M and Greenko.
(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Varun H K)
