Rio Tinto [RIO:LN], Australia’s largest iron ore exporter, has signed a memorandum of understanding (MOU) with Yindjibarndi Energy Corporation (AEC) to explore renewable energy opportunities in Western Australia, as reported by Reuters on October 20. Yindjibarndi Energy is a venture formed by Philippine energy giant ACEN Corporation [ACEM:PM] and Yindjibarndi Aboriginal Corporation (YAC), which represents the interests of the aboriginal Australian people living in the Pilbara region of Western Australia. Rio Tinto plans to build a 75 to 100 megawatts (MW) photovoltaic project near Karratha. In addition, the company will study potential battery power and wind projects to supplement its renewable energy network during the night. These initiatives align with Rio Tinto’s plan to replace the four gas-fired generators that power its Pilbara operations, which generate about a third of its annual carbon emissions in Australia.

The YEC has laid out an ambitious plan to develop more than 3 gigawatts (GW) of wind, solar and battery storage in Yindjibarndi Ngurra, with 750 MW planned for construction within the next few years. Through this collaboration with AEC, Rio Tinto aims to boost its renewable generation to 1GW in the Pilbara. This is a crucial part of the miner’s broader target to decarbonize its entire iron ore mining, rail, and port operations, which it estimates would require 3GW of renewable power. Rio Tinto has vowed to halve its Scope 1 and 2 emissions across its global operations by 2030 from 2018 levels, with around USD7.5bn allocated to decarbonization projects by 2030.

Sources:

https://www.reuters.com/sustainability/rio-tinto-aboriginal-group-sign-first-solar-deal-wa-iron-ore-region-2023-10-20/

Traditional owners sign renewable energy deal with Rio Tinto

Rio Tinto and Yindjibarndi Energy partner for renewables

https://www.afr.com/companies/mining/rio-tinto-in-solar-farm-deal-with-forrest-foes-20231020-p5edq7