Ottawa, June 19, 2025 — Industry Minister Mélanie Joly said the federal government is in talks with Rio Tinto about providing financial help as the company deals with the impact of tariffs. She made the statement while speaking to reporters before a cabinet meeting on Parliament Hill.— THE CANADIAN PRESS / Patrick Doyle
The Canadian government is in active discussions with global mining powerhouse Rio Tinto to offer financial support as the company struggles with cash flow issues triggered by a sharp hike in U.S. tariffs on aluminum and steel.
Industry Minister Mélanie Joly confirmed that talks began earlier this week during her visit to Saguenay, Quebec—home to Rio Tinto's critical aluminum operations. She emphasized that Ottawa is “ready to step in” to help ease the pressure, especially when “an unfair tariff war” is hurting Canadian industries.
Earlier, Ottawa had already committed funding to support a green technology upgrade at Rio Tinto’s Arvida smelter, helping the company install carbon-free aluminum smelting systems.
Now, the focus has shifted to ensuring the firm has enough liquidity to navigate the sudden financial strain.
A spokesperson from Joly’s office later confirmed that the discussions were ongoing but did not share additional details.
Tariffs Double, Canada Plans to Respond
Tensions escalated last month after U.S. President Donald Trump doubled global tariffs on aluminum and steel to 50%. This move has rattled Canadian manufacturers and exporters, putting many companies, including Rio Tinto, in a vulnerable spot.
Prime Minister Mark Carney stated that Canada will announce its formal response to the tariff escalation on July 21, depending on the progress of negotiations with the U.S.
Rio Tinto’s Major Investment in Quebec
Despite the challenges, Rio Tinto continues to invest heavily in Canada. The company had announced a $1.4 billion expansion of its aluminum smelting operations in Saguenay—Lac-Saint-Jean in 2023. According to the company’s website, it employs around 4,000 people in that region alone.
Although the firm hasn’t commented on the ongoing talks with Ottawa, its longstanding presence and economic impact in Quebec signal a vested interest in finding a resolution.
Quebec Secures Power Deal for Alouette Smelter
In a related development, Premier François Legault announced a fresh energy deal between Hydro-Québec and Alumenerie Alouette, a major aluminum smelter based in Sept-Îles. Rio Tinto owns 40% of this smelter through a stakeholder consortium.
As part of the deal, the group has pledged $1.5 billion to modernize the Côte-Nord plant by 2045, with half of the investment happening within the next five years. This upgrade is expected to secure 1,000 jobs in the region.
The electricity pricing model is performance-based: Hydro-Québec gains more when aluminum prices are high, while Alouette benefits during price drops—helping maintain competitiveness.
This new agreement takes effect in 2030, following the end of the current contract.
Other stakeholders in the Alouette consortium include Quebec’s QUALIUM, Austria’s Metall AG, Norway’s Hydro Aluminium, and Japan’s Marubeni Metals & Minerals.
