Rio Tinto (RIO.L), opens new tab said on Monday that the Canadian government had awarded it C$18 million ($13 million) to decarbonize iron ore processing in Labrador West.
The funding from the government’s Low-Carbon Economy Fund will enable Rio Tinto’s Iron Ore Company of Canada (IOC) to reduce the amount of heavy fuel oil that is used in the production of iron ore pellets and concentrate.
The government funding represents about 25% of the total cost of the project, with IOC funding the rest of the investment, Rio Tinto said.
Installation of new equipment will begin in the second half of the year and is expected to be completed in the first half of 2025.
One of the world’s largest iron ore producers, Rio expects to reduce about 2.2 million tonnes of greenhouse gas emissions over the lifetime of the project.
($1 = 1.3518 Canadian dollars)
