Rio Tinto secures two solar farm deals in Northern Territory

Crucially, the construction of solar farms will help produce green electricity and stimulate the development of a low-carbon economy for the Gove community once mining operations cease, which is expected by the end of the decade.

Rio Tinto began mining operations on the Gove Peninsula in 1971 and currently mines bauxite. The organisation’s plant produces around 11.56 Mt per year, with bauxite being the most common aluminium ore. Rio Tinto’s plant supplies domestic producers such as Queensland Alumina Limited and the Yarwun refineries in Gladstone, Queensland.

Power generation equipment supplier Aggreko has agreed to build, own and operate the solar farms for Rio Tinto for up to 10 years, with construction scheduled to start in July 2024 and completion in early 2025.

According to Rio Tinto, once the solar farms are completed, the region’s annual diesel consumption should be reduced by about 20%, or 4.5 million litres per year.

Commenting on the development of the solar farms, Rio Tinto Gove Acting Chief Executive Officer of Operations, Shannon Price, said the projects “will leave a positive legacy for the Gove Peninsula community once bauxite mining ends”.

“We are working with the Northern Territory Government and traditional owners to ensure a smooth transition of leased lands, municipal assets and infrastructure as Rio Tinto prepares to cease mining at Gove at the end of this decade,” Mr Price said.

“We are committed to helping plan for the region’s future, which includes providing reliable, affordable and environmentally sustainable infrastructure options.”

Rio Tinto continues to benefit from Aboriginal support for renewable energy

This is not the first time Rio Tinto has enlisted the support of Aboriginal communities to develop solar infrastructure in Australia.

In October 2023, the mining major signed a Memorandum of Understanding (MoU) with Aboriginal energy company Yindjibarndi Energy Corporation (YEC) to continue developing solar and wind projects in the Pilbara region of Western Australia.

The total capacity of potential projects under the MoU was not clarified, although Rio Tinto said around 600-700 MW of renewable energy would be needed to “replace the majority of gas consumption” from four operating Pilbara gas-fired power stations. It is also currently assessing the development of around 300 MW of solar projects.

It added that the memorandum of understanding will cover certain YEC Phase 1 projects, involving combined solar, wind and battery energy storage projects with a total capacity of 750 MW.