Rio Tinto-Backed Alouette Pledges C$1.5 Billion for Quebec Smelter

Aluminerie Alouette, Canada’s largest independent aluminum smelter and 40% owned by Rio Tinto, said it will invest at least C$1.5 billion (US$1.1 billion) to modernize its facilities in Sept-Îles, Quebec. The company has pledged C$750 million by 2030, with the remainder to be spent by 2045, aiming to boost efficiency and extend the lifespan of the nearly 35-year-old plant. The spending commitment is tied to a new electricity-pricing agreement in principle with Hydro-Québec that guarantees power supply through 2045. The risk-sharing tariff formula allows the provincial utility to capture more revenue when aluminum prices rise while lowering costs for the smelter during downturns, according to officials. Quebec Premier François Legault announced the deal alongside Alouette executives, describing it as critical to keeping the energy-intensive industry competitive amid 50% U.S. import tariffs on Canadian aluminum. The plant employs about 950 workers and produces roughly 630,000 metric tons of aluminum a year, or one-fifth of the province’s output.