We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Rio Tinto Secures ARENA Support to Advance Decarbonisation Project
Read MoreHide Full Article
Key Takeaways
Rio Tinto's NeoSmelt JV secured A$19.8M from ARENA to support its Western Australia pilot plant.
The project targets lower-carbon ironmaking using Pilbara ore and BlueScope's ESF technology.
NeoSmelt aims to cut CO2 emissions up to 80% versus blast furnaces, with hydrogen use planned post-launch.
Rio Tinto Group (RIO - Free Report) announced that its joint venture NeoSmelt secured Australian Renewable Energy Agency’s (“ARENA”) support for its planned Western Australian pilot plant.
Details on RIO’s Joint Venture NeoSmelt
Rio Tinto, BHP Group (BHP - Free Report) , and BlueScope, Australia's largest steelmaker, formed the NeoSmelt collaboration in February 2024. The joint venture was formed to develop Australia’s largest ironmaking electric smelting furnace (ESF) pilot plant in Western Australia.
The aim was to advance decarbonizing the steelmaking process, which is the need of the hour, considering that steel production accounts for around 8% of the world’s carbon emissions.
This combined BHP and Rio Tinto’s knowledge of Pilbara iron ore with BlueScope’s unique operating experience in ESF technology. BlueScope is the operator of the world’s only ESF processing direct reduced iron (DRI) in New Zealand.
Currently, Woodside Energy and Mitsui Iron Ore Development have teamed up with Rio Tinto, BHP Group and BlueScope to grow NeoSmelt further.
NeoSmelt secured A$19.8 million ($12.9) for a FEED study to develop lower-carbon production using Pilbara iron ore. The Western Australian Government has previously committed A$75 ($48.9) million contribution to the project.
The NeoSmelt pilot plant will test and optimize the production of iron from the ESF. The ESF is capable of producing iron suitable for the basic oxygen steelmaking process. Iron ore is first converted to DRI before being charged into the ESF. The DRI-ESF equipment can replace the traditional blast furnace. This can help in reductions of up to 80% in CO2 emission intensity compared with the conventional blast furnace steel route.
The pilot plant will produce molten iron of 30,000-40,000 tons a year. It will initially use natural gas to reduce iron ore to DRI. Once operational, the project aims to use lower-carbon emissions hydrogen for the process.
The project is currently in the feasibility phase, and the final investment decision for the pilot plant is expected in 2026, with operations anticipated to start in 2028.
Rio Tinto Stock's Price Performance
In the past year, shares of the company have lost 6.7% against the industry’s 1% growth.
SSR Mining has an average trailing four-quarter earnings surprise of 58.8%. The Zacks Consensus Estimate for SSRM’s 2025 earnings is pegged at $1.14 per share, implying year-over-year growth of 307%. SSR Mining stock has soared 88.6% last year.
ATI has an average trailing four-quarter earnings surprise of 12.54%. The Zacks Consensus Estimate for ATI’s 2025 earnings is pegged at $3.01 per share, indicating year-over-year growth of 22.4%. ATI shares have jumped 54% last year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Rio Tinto Secures ARENA Support to Advance Decarbonisation Project
Key Takeaways
Rio Tinto Group (RIO - Free Report) announced that its joint venture NeoSmelt secured Australian Renewable Energy Agency’s (“ARENA”) support for its planned Western Australian pilot plant.
Details on RIO’s Joint Venture NeoSmelt
Rio Tinto, BHP Group (BHP - Free Report) , and BlueScope, Australia's largest steelmaker, formed the NeoSmelt collaboration in February 2024. The joint venture was formed to develop Australia’s largest ironmaking electric smelting furnace (ESF) pilot plant in Western Australia.
The aim was to advance decarbonizing the steelmaking process, which is the need of the hour, considering that steel production accounts for around 8% of the world’s carbon emissions.
This combined BHP and Rio Tinto’s knowledge of Pilbara iron ore with BlueScope’s unique operating experience in ESF technology. BlueScope is the operator of the world’s only ESF processing direct reduced iron (DRI) in New Zealand.
Currently, Woodside Energy and Mitsui Iron Ore Development have teamed up with Rio Tinto, BHP Group and BlueScope to grow NeoSmelt further.
NeoSmelt secured A$19.8 million ($12.9) for a FEED study to develop lower-carbon production using Pilbara iron ore. The Western Australian Government has previously committed A$75 ($48.9) million contribution to the project.
The NeoSmelt pilot plant will test and optimize the production of iron from the ESF. The ESF is capable of producing iron suitable for the basic oxygen steelmaking process. Iron ore is first converted to DRI before being charged into the ESF. The DRI-ESF equipment can replace the traditional blast furnace. This can help in reductions of up to 80% in CO2 emission intensity compared with the conventional blast furnace steel route.
The pilot plant will produce molten iron of 30,000-40,000 tons a year. It will initially use natural gas to reduce iron ore to DRI. Once operational, the project aims to use lower-carbon emissions hydrogen for the process.
The project is currently in the feasibility phase, and the final investment decision for the pilot plant is expected in 2026, with operations anticipated to start in 2028.
Rio Tinto Stock's Price Performance
In the past year, shares of the company have lost 6.7% against the industry’s 1% growth.
RIO Zacks Rank & Stocks to Consider
Rio Tinto currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space are SSR Mining Inc. (SSRM - Free Report) and ATI Inc. (ATI - Free Report) . SSR Mining currently sports a Zacks Rank #1 (Strong Buy), and ATI carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SSR Mining has an average trailing four-quarter earnings surprise of 58.8%. The Zacks Consensus Estimate for SSRM’s 2025 earnings is pegged at $1.14 per share, implying year-over-year growth of 307%. SSR Mining stock has soared 88.6% last year.
ATI has an average trailing four-quarter earnings surprise of 12.54%. The Zacks Consensus Estimate for ATI’s 2025 earnings is pegged at $3.01 per share, indicating year-over-year growth of 22.4%. ATI shares have jumped 54% last year.