Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Rio Tinto (NYSE: RIO ASX: RIO) and cable solution provider Prysmian announced they are partnering to build a more sustainable North American supply chain for materials needed to expand power grids for the energy transition.
Power generation from renewables in the US is expected to increase from 21% in 2021 to 44% in 2050, according to the EIA, requiring significant investments in power grids and boosting demand for innovative materials used in electrification projects.
Rio Tinto and Prysmian have signed a five-year supply agreement for low-carbon aluminum made with renewable hydropower from Rio Tinto’s Canadian operations. This agreement will support Prysmian’s decarbonization drive towards achieving its objective to be carbon neutral by 2050.
The companies have also signed a joint development agreement to leverage their technologies, research and development capabilities, and technical expertise to develop multi-material solutions in support of North America’s growing electrification demand.
“We are proud to work together with Prysmian to strengthen their North American supply chain for aluminum produced to the highest sustainability standards and develop the materials needed to produce more advanced power cables,” Rio Tinto vice president of aluminum sales Amy Abraham said in the statement.
“These types of products are critical for the power grid expansion that is needed for the transition to renewable energy sources and a low-carbon future.”
Prysmian Group North America’s chief executive officer Andrea Pirondini said the company is committed to achieving net-zero emissions across its entire value chain by 2050.
