World’s second largest miner Rio Tinto inks deal with AMG M&M for green aluminium project in India: Report
New Delhi: Rio Tinto, the world’s second-largest miner, announced on Thursday it has signed a memorandum of understanding (MoU) with India-based AMG Metals & Materials (AMG M&M) to explore a large-scale low-carbon aluminium project in India, according to a Reuters report.
The project marks a return to India for Rio Tinto, nearly a decade after its exit, The Economic Times had reported earlier.
As per the MoU, the companies are evaluating the feasibility of producing up to 1 million tonnes per annum (mtpa) of primary aluminium and 2 mtpa of alumina, both powered entirely by clean energy sources such as wind and solar, supported by pumped hydro storage.
In the first phase, Rio Tinto and AMG M&M are considering a 500,000-tonne aluminium smelter at what they described as a “favourable” site in India.
No financial details of the agreement have been disclosed yet.
AMG M&M is promoted by Greenko co-founders Anil Chalamalasetty and Mahesh Kolli. Greenko is a leading clean energy firm in India, and it will support the project by providing a dependable renewable power solution. Rio Tinto, meanwhile, will work towards developing a commercial alumina supply chain.
“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, who is also Group President of AMG M&M and Greenko.
According to ET, the planned project could draw on 1.8 to 2.0 GW of wind and solar capacity, backed by 7–8 GW of pumped hydro energy storage.
With global aluminium demand now around 70 million tonnes annually, its lightweight and recyclable properties have made it critical to industries like automotive and construction.
The proposed project could require phased investments between $5 billion and $7 billion, with energy infrastructure accounting for a significant share of the cost.
Although India is the world’s second-largest aluminium producer, it continues to rely heavily on bauxite imports despite having rich reserves.
As part of the plan, bauxite could be sourced from Rio Tinto’s mines in Australia to meet both domestic demand and support exports of low-carbon aluminium, particularly to the European market.
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