Rio Tinto Group (LSE: RIO) (ASX: RIO) will be building the largest solar power plant in Canada’s north for its diamond mining operation in the Northwest Territories (NWT).
The company announced its plans to build the 6,600-panel solar plant for the Diavik Diamond Mine on Thursday. Rio Tinto says it will provide up to 25 per cent of the operation’s energy during its remaining commercial production scheduled to end in 2026 and closure work expected to conclude in 2029.
The plant’s construction will begin in the coming weeks and it is expected to be fully operational by the end of H1 next year.
It will utilize bi-facial panels that generate energy from direct sunlight above and sunlight reflected off of the snow below. The site is already equipped with a wind-diesel hybrid power facility that provides it with a significant portion of its electricity and the new solar plant is expected to reduce diesel consumption at the mine by one million litres annually.
The Government of the Northwest Territories has invested $3.3 million in the project through its Large Emitters Greenhouse Gas Reducing Investment Grant Program and the mine has also received $600,000 from the Government of Canada’s Clean Electricity Investment Tax Credit introduced earlier this year. This is the first investment in a project ever made through the NWT grant program.
“Through its wind-diesel hybrid power facility, Diavik is already a leader in cold climate renewable technology and this important project reinforces our dedication to reducing our carbon footprint,” said the mine’s Chief Operating Officer Angela Bigg.
Rio Tinto says it is collaborating with the NWT government to determine how the renewable energy infrastructure at the mine can be beneficial to the region once the operation shuts down before the end of the decade.
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Established in 2003, the Diavik mine is Canada’s largest diamond mining operation and produces approximately 4 million carats of rough diamonds annually.
Canada is one of the world’s top diamond-producing countries alongside Russia, Botswana, the Democratic Republic of the Congo and Australia — according to the Diamond Registry information platform established in 1961.
Other companies mining diamonds in Canada include Burgundy Diamond Mines Limited (ASX: BDM), which became the largest ASX-listed diamond miner when it acquired the Ekati diamond project in the NWT last month and Saskatchewan’s Star Diamond Corporation (TSX: DIAM), which has a joint venture agreement with Rio Tinto Exploration Canada for a series of diamond mining operations in the province.
Rio Tinto shares dropped by 0.59 per cent Friday to C$95.13 on the Australian Securities Exchange.
rowan@mugglehead.com
