Rio Tinto Group (NYSE:RIO) and Ngarluma Aboriginal Corporation (NAC) have agreed to jointly develop an 80MW solar farm on Ngarluma Country near Karratha.
The solar farm is the first project the Ngarluma people and Rio Tinto will pursue following a memorandum of understanding to explore renewable energy opportunities on Ngarluma Country.
The project, adjacent to Rio Tinto's Yurralyi Maya Power Station near Karratha, could displace up to 11% of natural gas used for generation, reducing Rio Tinto's emissions by up to 120kT CO2e annually.
This project aims to supply renewable energy to Rio Tinto's iron ore operations in the Pilbara region of Western Australia.
The company expects the feasibility study by early 2025, with commissioning planned for 2027, pending approvals and final investment decision.
By 2030, Rio Tinto aims to deploy 600MW to 700MW of renewable energy to largely replace gas in its Pilbara power network, with additional capacity needed for future fleet electrification.
Read: Rio Tinto Invests $143M in Low-Emission Steel Research And Development
Ngarluma Aboriginal Corporation CEO Ljuba Mojovic said, "We're fortunate to embark on our first renewable energy project with Rio Tinto to reduce emissions and to create economic opportunities for the Ngarluma People."
"The Solar farm project will enable NAC to realise sustainable revenues, increase contracting opportunities and contribute to a positive environmental impact in the Pilbara."
Earlier this month, Rio Tinto stated that it reportedly is in negotiations with workers at its Oyu Tolgoi copper operations in Mongolia to prevent further industrial action.
Investors can gain exposure to the stock via VanEck Steel ETF (NYSE:SLX) and NEOS ETF Trust Mast Global Battery Recycling & Production ETF (NYSE:EV).
Also Read: Rio Tinto To Initiate Largest European Lithium Project By 2028
Price Action: RIO shares are trading lower by 0.86% at $67.93 premarket at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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