Rio Tinto and Giampaolo Group have struck a $700 million deal to form the Matalco recycled aluminium joint venture in Canada.
With an aim to combine the strengths of the two companies, Rio has acquired a 50 per cent equity stake in Matalco, which was established in 2005 as a leading supplier of recycled aluminium billet and slab to North America.
“Creating the Matalco joint venture gives Rio Tinto a leading position in the rapidly growing North American recycled aluminium market, allowing us to offer a full complement of low-carbon recycled products,” Rio Tinto chief executive Jakob Stausholm said.
“We look forward to working in partnership with Giampaolo Group to support the drive to net zero by expanding recycled production and providing closed-loop recycling solutions to help our customers reduce their carbon footprint.”
Demand for recycled aluminium is forecast to increase by more than 70 per cent from 2022 to 2032, driven by the transportation, construction, and packaging sectors.
Over the same period, global recycled aluminium consumption is forecast to grow by more than 60 per cent.
“This collaboration showcases our dedication to continuously evolving our production of high-quality, low-carbon aluminium,” Giampaolo Group chief executive officer Chris Galifi said.
“We look forward to continuing to grow with our new partners while providing products that support sustainability.”
Matalco will remain the operator of the joint venture’s six facilities in the US and its Canadian site, which together have a capacity to produce around 900,000 tonnes of recycled aluminium per annum.
Matalco will also continue to provide closed-loop solutions to transform customers’ scrap into high-quality aluminium slab and billet.
For the eight-month period ending on September 30 2023, Matalco produced approximately 400,000 tonnes of recycled aluminium, including 78 per cent billet and 22 per cent slab.
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