Rio Tinto invests CA$7.6 million in ore sorting tech at Lac Tio mine

HAVRE-SAINT-PIERRE, Canada - Rio Tinto (market capitalization: $94.75 billion), a prominent player in the global metals and mining industry, is investing CA$7.6 million in an industrial demonstration project to test ore sorting technology at its Lac Tio mine in Havre-Saint-Pierre, Quebec. The Quebec government is contributing an additional CA$2.5 million through its support program for mineral processing of critical and strategic minerals. According to InvestingPro data, Rio Tinto maintains strong financial health with an EBITDA of $19.06 billion, supporting its continued investment in innovative technologies.

The technology aims to sort ore based on titanium and scandium content directly at the source. By more efficiently separating commercially viable rock from waste rock, the process could reduce material transported between the mine and Rio Tinto’s processing complex in Sorel-Tracy, potentially decreasing greenhouse gas emissions and transportation costs. This efficiency initiative aligns with the company’s strong operational performance, reflected in its attractive P/E ratio of 8.19 and robust dividend yield of 7.58%.

"The use of ore sorting technology represents a tangible opportunity to optimize our processes right from the extraction stage," said Sophie Bergeron, Managing Director of Rio Tinto Iron and Titanium and Diamonds.

The project will be implemented in two phases. In 2025, activities will focus on engineering, commissioning the ore sorting circuit, and technological validation. In 2026, additional equipment will be integrated to automate the process and produce multiple batches of enriched ore. For detailed analysis of Rio Tinto’s investment potential and access to 10+ additional exclusive ProTips, visit InvestingPro.

The demonstration project may also help assess potential optimizations of ore pre-treatment at the Sorel-Tracy plant, improve resource management, and explore previously unprofitable parts of the deposit. This could potentially lead to a review of the mining plan and extension of the mine’s lifespan.

Maïté Blanchette Vézina, Quebec’s Minister of Natural Resources and Forests, stated that the initiative helps "accelerate the transformation of critical and strategic minerals in Quebec, reinforcing the province’s position as a global leader."

The information in this article is based on a press release statement from Rio Tinto.

In other recent news, Rio Tinto and Codelco have announced a joint venture to develop the Salar de Maricunga lithium project in Chile. Rio Tinto will invest $350 million for initial studies and an additional $500 million upon project approval, with a further $50 million contingent on production by 2030. The venture focuses on updating reserves and employing sustainable practices. Rio Tinto also revealed plans to modernize its Isle-Maligne hydroelectric power plant in Quebec with a $1.2 billion investment, aiming to secure low-carbon aluminum production. This project involves infrastructure upgrades and is expected to complete by 2032.

JPMorgan has reiterated its Overweight rating on Rio Tinto, with a price target of GBP59.20, citing potential growth due to positive developments in China-US trade discussions. Despite recent challenges, Rio Tinto reported strong performance in other areas, with record production at the Oyu Tolgoi copper mine and bauxite operations. However, extreme weather affected Pilbara iron ore shipments, prompting additional investments to mitigate losses. The company continues to advance its growth projects, including the Western Range and Simandou iron ore projects, and has formed Rio Tinto Lithium following the acquisition of Arcadium.

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