(ET)
World’s second-largest miner Rio Tinto on Thursday announced it has signed a memorandum of understanding (MoU) with India-based AMG Metals & Materials (AMG M&M) to explore the feasibility of a low-carbon aluminium project in the country, reported Reuters. AMG M&M is promoted by the two founders of Greenko and AM Green. Earlier, ET exclusively reported that Rio Tinto is planning its India comeback nearly a decade after its exit. The proposed project could involve the production of up to 1 million tonnes per annum (mtpa) of primary aluminium and 2 mtpa of alumina, both powered by renewable energy sources such as wind and solar, backed by pumped hydro storage, according to the global mining giant .As part of the initial phase, the companies will assess the possibility of setting up a 500,000 tonnes per annum aluminium smelter at a “favourable” site in India. Rio Tinto has not disclosed the financial terms of the agreement. AMG M&M was founded by Anil Chalamalasetty and Mahesh Kolli, who are also the co-founders of Greenko Group, a clean energy firm. With growing global demand for sustainable materials, AMG M&M will work with Greenko to develop a reliable renewable energy solution, while Rio Tinto will look into establishing a commercial alumina supply chain, the company said in its statement. “This MoU could deliver much-needed low-carbon metal at scale to propel decarbonization initiatives in global supply chains across auto, construction, consumer packaging and many more segments,” said Mahesh Kolli, Group President of AMG M&M and Greenko. As per ET report, India’s planned green aluminium project is expected to run on 1.8–2.0 GW of solar and wind energy backed by pumped hydro storage, translating to 7–8 GW of clean power. Aluminium’s lightweight, recyclable nature and growing global demand—now at 70 million tonnes—make it key for sectors like autos and construction. The project could require $5–7 billion in phases, with power as the major cost. While India is the world’s second-largest aluminium producer, it remains a major bauxite importer despite abundant reserves. The plan includes sourcing bauxite from Rio Tinto’s Australian mines to meet rising domestic demand and cater to EU exports of low-carbon aluminium.
