RIO to Invest $1.2B in Quebec Hydroelectric Power Plant Upgrade

Group 1: Investment and Modernization - Rio Tinto Group is set to invest $1.2 billion (CAD $1.7 billion) to modernize its 100-year-old Isle-Maligne hydroelectric power plant in Quebec, Canada, marking its most significant investment in hydroelectric assets in over seven decades [1] - The modernization will involve replacing eight turbine-alternator groups, refurbishing water intake and hydraulic passage, and constructing an extension and mechanical workshop [2] - The project is scheduled for completion by 2032 and will require a workforce of over 300 people at its peak [3] Group 2: Strategic Importance - The Isle-Maligne hydroelectric power plant is a strategic asset for Rio Tinto, ensuring a more efficient, safe, and reliable power supply of renewable energy to its smelters and other facilities [4] - The region accounts for around 50% of Rio Tinto's global aluminum production, highlighting the importance of this investment for the company's low-carbon aluminum production [1] Group 3: Competitive Advantage - Rio Tinto is one of Canada's largest private producers of hydroelectricity, with seven hydroelectric facilities in Quebec and British Columbia, providing a competitive advantage in producing high-quality, low-carbon footprint aluminum [5] - The company has previously announced projects worth a combined $183 million (CAD 252 million) for further refurbishment at the Isle-Maligne power plant [3] Group 4: Stock Performance - Over the past year, shares of Rio Tinto have lost 14.7%, slightly underperforming the industry's decline of 14.5% [6]