News: RIO UPDATE 1-Rio Tinto targets reduced carbon emissions at Gladstone with new solar deal

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Jan 24 (Reuters) - Rio Tinto (RIO) RIO.L said on Wednesday it would buy all electricity generated from Australia's largest solar farm for 25 years, in a bid to provide renewable power to the global miner's operations in Gladstone.

The world's largest iron-ore producer has signed a new agreement with green energy firm European Energy Australia, which is building the Upper Calliope solar farm.

Once developed and approved, the Upper Calliope solar farm will have the potential to cut down Rio's operating carbon emissions by 1.8 million tonnes per year.

The construction of the plant is targeted to start in 2025 or 2026 and will be built at a site about 50 kilometres south-west of Gladstone.

The solar power deal is also expected to provide ways to repower Rio's three production assets in Gladstone —the Boyne aluminium smelter, the Yarwun alumina refinery and the Queensland Alumina refinery, the company said in a statement.

The mining giant had in June 2022 asked for proposals to develop wind and solar energy plants in Australia's Queensland state to power three of its aluminium projects by 2030.

Upper Calliope is the first successful applicant in a formal request for proposals made by Rio for renewable power and firming projects in Central and Southern Queensland, it said.