Rio Tinto Enhances Renewable Energy Capacity at Kennecott Mine

Rio Tinto Plc (NYSE: RIO) recently brought online a new solar energy facility at its Kennecott copper mine located in Utah, marking an important milestone in the company's efforts to integrate more sustainable and circular practices within its critical-minerals supply chain. The newly activated installation delivers 25 megawatts of solar power, supplementing an earlier 5-megawatt solar project commissioned in 2023. Together, these installations elevate Kennecott's overall solar generation capacity to 30 megawatts. The augmented solar infrastructure is capable of producing sufficient electricity to meet the annual power needs of approximately 1,026 average households in the United States. According to Rio Tinto, this renewable energy input effectively reduces Kennecott’s Scope 2 greenhouse gas emissions by around 6%, underscoring the environmental benefits of the operation. Construction of the solar array commenced in October 2024 under a partnership with engineering and construction firm Bechtel. The project was completed and commissioned in October, with the energization of the system following in December of the same year. The new solar installation comprises over 71,000 photovoltaic panels. Notably, these panels incorporate tellurium produced as a critical mineral at Kennecott, emphasizing a circular supply chain approach wherein byproducts of copper refining are repurposed in renewable energy technologies. Kennecott initiated tellurium production in 2022 and stands as one of only two producers of this essential mineral within the United States. The tellurium extracted is sent to 5N Plus, a Canadian firm specializing in converting it into thin-film semiconductor materials. These semiconductors are predominantly supplied to First Solar Inc. (NASDAQ: FSLR), which manufactures the photovoltaic panels now deployed at Kennecott's solar facility. This vertical integration keeps the tellurium supply chain firmly rooted within North America. Nate Foster, Managing Director of Rio Tinto Kennecott, highlighted the broader significance of the project by stating, "This new solar plant is more than a source of renewable power for our operations; it's a demonstration of circularity and supply chain resilience." He stressed that the initiative reflects a strategic commitment to both environmental stewardship and strengthening critical-materials supply ecosystems. Scott Austin, Bechtel's leader for renewables and clean power initiatives, added, "Working closely with Rio Tinto, Bechtel is proud to have delivered this project two months ahead of schedule," highlighting the efficiency and collaboration involved in bringing the project to fruition. Market-wise, Rio Tinto's shares experienced a slight uptick of 0.19%, trading at $85.29 during Tuesday’s session. The stock is nearing its 52-week high of $87.34, based on data from Benzinga Pro. In summary, the expansion of the Kennecott solar project exemplifies Rio Tinto's strategic focus on decarbonizing its operations and reinforcing the resilience of its supply chain for critical minerals essential to renewable energy technologies. By integrating the production of tellurium and its immediate application in solar panels within a North American supply chain, Rio Tinto advances a model combining sustainability with industrial efficiency.