Rio Tinto, which was developing the Bunder mines in Madhya Pradesh for commercial rough diamonds since 2004, handed over the project to the state government and exited India a decade ago, after years of environmental opposition and lack of policy support.

Together, the partners will consider the potential development of up to a million tonnes per annum (mtpa) primary aluminium smelter and 2 mtpa of alumina production, both powered by renewable wind and solar energy, and firmed by pumped hydro storage. The development will comprise a study to evaluate a potential first phase, 500,000 tonnes per annum, of primary aluminium smelter in a yet to be identified location in India.

While AMG M&M will examine renewable energy solutions with Greenko, Rio Tinto will explore a commercial alumina solution. The study will also assess smelting technology options to determine the most cost-effective solution for the project. Sources said the proposed plans will entail an investment of $5-7 billion.

In 2020, India allowed 100% Foreign Direct Investment (FDI) under the ‘Automatic’ route for mining and exploration of metal and non-metal ores, including diamond, gold, silver and precious ores.

Aluminium is a recyclable, environment-friendly metal having a host of applications across diverse sectors like power, transportation, building, construction and packaging. Global primary aluminium demand has reached 70 million tonnes per annum (MTPA).

India already is the world's second biggest aluminium producer and the third biggest consumer, with demand set to double over the next decade. The current aluminium market in India is around 5 MTPA, dominated by Aditya Birla Group's Hindalco, Vedanta, and the public-sector National Aluminium Company (NALCO).

"With its rapid economic growth and strategic position, India is a compelling location for this potential project and aligns with our long-term vision for a globally more diverse and resilient aluminium business,” said Rio Tinto Aluminium Chief Executive Jérôme Pécresse.

“Over the last few years, we have been able to deliver many decarbonisation solutions comprising electricity, molecules, chemicals and fuels and are excited to expand that further to the materials space'', said Mahesh Kolli, Group President of AMG Metals & Materials and Greenko. AMG Metals & Materials is promoted by Anil Chalamalasetty and Mahesh Kolli, the founders of Greenko Group.

Greenko has a near-term operational renewable energy capacity of 10 GW—across solar, wind and hydro—and is building 100 GWh of single-cycle storage capacity across India. AM Green is developing green ammonia projects across multiple locations in India to reach 5 mtpa of green ammonia capacity by 2030. Its first plant is currently under construction in Kakinada with a projected capacity of 1 Mtpa of green ammonia.

Rio Tinto,—with an annual revenue of $53.6 billion in 2024—is specialised in finding, mining, processing and marketing, and is a major global producer of iron ore, aluminium, copper, lithium, borates and titanium dioxide.

Rio Tinto

Mining giant Rio Tinto returns to India, joins hands with AM Green to explore aluminium