The funds are intended to support the decarbonization of iron ore processing at the Labrador West facility
The Canadian government has allocated CAD 18.1 million (US$13.4 million) from the Low Carbon Economy Fund to Canadian iron ore company Rio Tinto – Iron Ore Company (IOC). The funds are intended to support the decarbonization of iron ore processing in Labrador West, Rio Tinto said .
The allocated amount is approximately 25% of the total project cost, the remainder will be financed by the IOC.
This funding will allow the IOC to reduce the amount of fuel oil used in the production of iron ore pellets and concentrates. The company will install an electric boiler to replace the boilers that operate there, in addition to introducing new energy-efficient equipment and burners to further reduce fuel oil consumption in the roasters.
Over the course of this project, Iron Ore Company will reduce greenhouse gas emissions by approximately 2.2 million tons. Installation of the new equipment will begin in the second quarter of 2024 and should be completed in the first half of 2025.
“Iron Ore Company has plans to decarbonize and continue to produce high-quality iron ore with the lowest carbon intensity in the world right here in Canada. This project alone will reduce IOC's greenhouse gas emissions by approximately 9%,” said Mike McCann, president and CEO of the company.
Rio Tinto is the majority shareholder of IOC, a company-owned joint venture in partnership with Mitsubishi and Labrador Iron Ore Royalty Income Corporation. Its iron ore production capacity is 23 million tonnes per year, with approximately 12.5 million tonnes of raw material per year available for processing into high-quality pellets.
As Compraço previously reported, Rio Tinto and BHP Group will team up with Australian rolled steel producer BlueScope Steel to explore the development of Australia's first electric pilot smelter (ESF) to produce green pig iron. The cooperation aims to demonstrate that pig iron production from Pilbara ore is possible using renewable energy in combination with direct reduced iron (DRI) technology.
