Industry Minister Mélanie Joly has revealed that discussions are underway between the Canadian government and Rio Tinto, a major player in the mining and metals sector, to address financial challenges stemming from the global steel and aluminum tariffs imposed by the United States. Joly, speaking during a visit to Saguenay, Quebec, to engage with local aluminum industry businesses, indicated that talks with Rio Tinto commenced earlier in the week. While a spokesperson for the minister confirmed the ongoing negotiations, no specific details were disclosed.
The recent decision by U.S. President Donald Trump to raise tariffs on imported steel and aluminum to 50 percent has significantly impacted various countries, with Canada being a primary exporter of these metals to the U.S. In response, Canadian Prime Minister Mark Carney announced intentions to adjust counter-tariffs by July 21, aligning with the deadline set during discussions with President Trump at the G7 summit.
Rio Tinto, a prominent global mining corporation with dual headquarters in the UK and Australia, maintains a significant presence in Canada, operating numerous mines and refineries with a substantial workforce. The company’s operations in the Saguenay—Lac-Saint-Jean region alone employ approximately 4,000 individuals, with plans announced in 2023 to invest $1.4 billion in expanding its aluminum smelting activities in the area. Despite attempts to seek comments from Rio Tinto regarding the ongoing negotiations, responses have not been provided.
In a parallel development, Quebec Premier François Legault unveiled a new energy supply agreement between Hydro-Québec and Aluminerie Alouette, an international consortium operating a smelter in Sept-Îles where Rio Tinto holds a 40 percent stake. As part of this agreement, the consortium will inject $1.5 billion into modernizing operations in the Côte-Nord region by 2045, with a significant portion allocated for the next five years. This investment is expected to safeguard 1,000 jobs in the region. The revised electricity pricing arrangement, effective from 2030 following the expiration of the current pact, aims to strike a balance between risk and reward, offering incentives to Hydro-Québec during robust aluminum market conditions while enhancing Aluminerie Alouette’s competitiveness during downturns.
Notable stakeholders in Aluminerie Alouette include Quebec investment agency QUALIUM, Austria’s Metall AG, Norway’s Hydro Aluminium, and Japan’s Marubeni Metals & Minerals.