Rio Tinto and Ngarluma to Build Solar Farm to Power Pilbara Iron Ore Operations

Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and Ngarluma Aboriginal Corporation (NAC) announced on Monday (July 15) that they will join hands to pursue the development of an 80 megawatt solar farm.

The project is the first initiative under a memorandum of understanding that seeks to explore opportunities for renewable energy projects on Ngarluma Country, located in Western Australia's Pilbara region.

The solar farm is expected to sit next to the Yurralyi Maya power station, one of Rio Tinto’s four major power plants in Western Australia. Once complete, it is projected to reduce the company’s CO2 footprint to 120,000 tonnes per year.

Power from the solar farm will be used to supply Rio Tinto's iron ore operations in the Pilbara region. The company is one of the world's biggest producers of the commodity, with 17 mines located in the area.

According to a press release, the project “has the potential to displace up to 11 percent of natural gas currently used for generation across Rio Tinto’s integrated mining operations in the Pilbara.”

By 2030, approximately 600 to 700 megawatts of renewable energy will be required to significantly reduce gas consumption across Rio Tinto’s Pilbara power network. More renewable energy will be needed to support the electrification of fleets thereafter, as per Tuesday's press release.

Richard Cohen, Rio Tinto's managing director for rail, port and core services, noted that developments like the solar farm aren't just about reducing emissions — they also strengthen the company's connection with the Ngarluma people.

“This project underscores the significance of our long-term relationship with the Ngarluma people and demonstrates our commitment to working together to contribute to a more sustainable future,” he added.

NAC CEO Ljuba Mojovic also shared her sentiments, stating that the project “will enable NAC to realize sustainable revenues, increase contracting opportunities and contribute to a positive environmental impact in the Pilbara.”

A feasibility study for the solar farm is slated for completion in early 2025. Following the necessary approvals and final investment decision, commissioning is projected to happen in 2027.

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Securities Disclosure: I, Gabrielle Luisa de la Cruz, hold no direct investment interest in any company mentioned in this article.