Rio Tinto’s Iron Ore Company of Canada (IOC) has received a C$18.1 million grant from the Government of Canada's Low Carbon Economy Fund, aimed at supporting the reduction of carbon emissions in iron ore processing at its Labrador West operations.

This funding will facilitate IOC's efforts to decrease the reliance on heavy fuel oil in the production of iron ore pellets and concentrate. The company plans to install an electric boiler to replace emissions from heavy fuel oil boilers, alongside the implementation of instrumentation and fuel-efficient burners to further curtail heavy fuel oil usage in induration machines.

Throughout the project, IOC anticipates a cumulative reduction of approximately 2.2 million tonnes of greenhouse gas emissions.

The installation of the new equipment is scheduled to commence in the second quarter of 2024, with completion expected in the first half of 2025. During the construction and implementation phases in Labrador West, the project is projected to create more than 100 employment opportunities.

IOC President and Chief Executive Officer Mike McCann said: “Rio Tinto IOC has a plan to decarbonise and continue producing some of the lowest carbon-intensity high-grade iron ore products in the world, right here in Canada. This project alone will eliminate approximately 9% of IOC’s greenhouse gas emissions. We look forward to collaborating with the Government of Canada and other partners towards our goal of achieving net zero emissions by 2050.”

Labrador Member of Parliament Yvonne Jones said: “By working with organisations across Canada, such as IOC, we can help the community save money on monthly operating costs and grow the economy, all while fighting climate change. Through the Low Carbon Economy Fund, the Government of Canada is partnering with climate leaders nationwide to cut emissions. I applaud the leadership shown by IOC for helping to keep our air clean and build resilient communities in Newfoundland and Labrador.”

Canada's funding covers about 25% of the total project cost, with IOC paying the rest.

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Source: Rio Tinto