The Legault government is once again coming to the aid of the mining giant Rio Tinto, this time for a project to extract gallium, a critical mineral used in semiconductors intended in particular for the production of electric vehicles and cell phones.
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The Minister of Natural Resources, Maïté Blanchette Vézina, announced on Friday the granting of a $7 million subsidy to the Australian-British multinational, which recorded net profits of US$5.8 billion during the first half of 2024 .
Rio Tinto will evaluate the potential for extraction and valorization of gallium, which is present “in small quantities” in the bauxite processed at the company’s alumina refinery in Saguenay–Lac-Saint-Jean.
Chinese blockade
Recall that 10 days ago, China blocked the export to the United States of several critical minerals, including gallium, which caused the price of these substances to jump.
If the preliminary phases of the Rio Tinto project are “conclusive,” the company “plans to build a demonstration plant in Saguenay,” whose production capacity could reach 3.5 metric tons of gallium per year, she said. specified.
This demonstration plant project is currently estimated at $20 million.
“Although several key steps remain to be taken, Rio Tinto is strongly committed to this important process and thanks the Quebec government for its important contribution,” said Rio Tinto Aluminum CEO Jérôme Pécresse in a statement. press release.
“Ultimately, the extraction potential of a commercial-sized plant could reach 40 tonnes annually, which represents between 5 and 10% of current global gallium production,” Rio Tinto said.
Help for several projects
In recent months, the government has granted several financial aid to the company to support investments whose total value could exceed $2 billion.
In June, Quebec announced $140 million in aid to Rio Tinto for the installation, in Saguenay, of 10 aluminum production tanks using Elysis technology.
In April, the government awarded it a grant of more than $2 million to help it automate two alumina unloaders.
Last year, Quebec paid the company more than $9 million for decarbonization projects, in addition to granting it an advantageous loan of $150 million for the construction of new tanks at the Jonquière Complex – a $1,000,000 project. $4 billion.
However, in 2023, Rio Tinto only paid $18 million in taxes in Quebec while it generated profits of more than $1 billion here, according to company documents.
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