Rio Tinto IOC receives funding to decarbonise Canadian iron ore processing


Thursday, 29 February, 2024

Rio Tinto IOC receives funding to decarbonise Canadian iron ore processing

The Government of Canada has awarded C$18.1 million from its Low Carbon Economy Fund to Rio Tinto’s Iron Ore Company of Canada (IOC) to support the decarbonisation of iron ore processing at the latter’s operations in Labrador West.

Rio Tinto said the funding will enable IOC to reduce the amount of heavy fuel oil that is consumed in the production of iron ore pellets and concentrate. The company will install an electric boiler to displace emissions from the usage of the heavy fuel oil boilers, as well as instrumentation and fuel-efficient burners to further reduce heavy fuel oil consumption from induration machines.

Over the lifetime of this project, IOC expects to see a cumulative reduction of about 2.2 million tonnes of greenhouse gas emissions.

Installation of the new equipment will begin in 2024 and is expected to be completed in the first half of 2025. The project will create more than 100 jobs during the construction and implementation stages in Labrador West.

“Rio Tinto IOC has a plan to decarbonise and continue producing some of the lowest carbon-intensity high-grade iron ore products in the world, right here in Canada,” said IOC President and Chief Executive Officer Mike McCann. “This project alone will eliminate approximately 9% of IOC’s greenhouse gas emissions. We look forward to collaborating with the Government of Canada and other partners towards our goal of achieving net zero emissions by 2050.”

The Government of Canada’s contribution represents approximately 25% of the total cost of the project, with IOC funding the remainder of the investment.

Image credit: iStock.com/Darryl Peroni

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