Rio Tinto-backed aluminum firm to invest $1.1 billion in Canada smelter

Aluminerie Alouette has a production capacity of 620,000 tonnes annually. Credit: The Aluminium Association of Canada

Aluminerie Alouette, an aluminum maker that’s partially owned by Rio Tinto Plc, is planning to commit as much as C$1.5 billion ($1.1 billion) to modernizing its facilities in northern Quebec, according to people familiar with the matter.

The company has secured a new electricity supply deal with Hydro-Quebec, the power utility owned by the Quebec government, the people said, speaking on condition they not be identified because the matter is still private.

A spokesperson for Aluminerie Alouette declined to comment on the details, but said an official announcement will come Friday.

The company’s investment will be welcome news for an industry that’s facing the pressures of US President Donald Trump’s trade war. The White House has put 50% tariffs on imports of foreign aluminum, a move that will hurt US businesses that use the metal. In one example, beer and alcohol maker Constellation Brands Inc. said Wednesday that it expects aluminum tariffs to cost the company about $20 million over the remainder of its fiscal year.

Canada is the largest exporter of the metal to the US, which doesn’t have enough aluminum smelting capacity meet its own needs.

“The United States needs Quebec to meet its demand, especially since we produce 70% of all aluminum in North America,” Quebec Economy Minister Christine Frechette said in a post on X Monday. “Our priority remains to protect our economy and our workers.”

Aluminerie Alouette is a consortium made up of Rio Tinto, which owns 40%, and other companies including AMAG Austria Metall AG and Norway’s Hydro Aluminium, according to the company’s website. Its smelter in Sept-Îles, Quebec, employs about 900 people and has annual capacity of 630,000 metric tons of primary aluminum.

(By Mathieu Dion)

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