Canada is in talks with mining giant Rio Tinto to ease cash flow strain caused by U.S. tariffs on steel and aluminum. Quebec also announces a new energy deal.
Why the Federal Government Is Stepping In
The Canadian government has opened discussions with global mining leader Rio Tinto to address cash flow difficulties triggered by the United States’ recent tariff hike on imported steel and aluminum. Industry Minister Mélanie Joly confirmed Thursday that talks began earlier this week and are ongoing.
Where the Impact Is Being Felt
During a visit to Saguenay, Quebec — a major aluminum production hub — Joly met with regional business leaders and acknowledged the financial pressure the new tariffs are placing on key Canadian exporters. Rio Tinto, which employs around 4,000 people in the Saguenay–Lac-Saint-Jean area, has been significantly affected.
What Triggered the Crisis
Last month, U.S. President Donald Trump doubled tariffs on steel and aluminum imports to 50%, citing the need to strengthen domestic production. As the largest foreign supplier of both metals to the U.S., Canada has been directly hit. Prime Minister Mark Carney has said Canada will adjust its counter-tariffs by July 21 if no resolution is reached with Washington.
How Quebec Is Supporting the Sector
On Friday, Quebec Premier François Legault announced a new energy deal between Hydro-Québec and Aluminerie Alouette, a smelting consortium that includes Rio Tinto as a 40% partner. The agreement, which takes effect in 2030, is structured to protect competitiveness when aluminum prices are low while rewarding Hydro-Québec during market peaks.
What the Investment Means for the Region
As part of the deal, Aluminerie Alouette has pledged to invest $1.5 billion in modernizing its Côte-Nord operations by 2045, with $750 million committed over the next five years. The project is expected to sustain 1,000 regional jobs and enhance the facility’s global competitiveness.
Who Else Is Involved
Besides Rio Tinto, Aluminerie Alouette’s stakeholders include Quebec’s public investment agency QUALIUM, Austria’s Metall AG, Norway’s Hydro Aluminium, and Japan’s Marubeni Metals & Minerals. The diversified ownership reflects the strategic importance of the Canadian aluminum industry on the global stage.
What’s Next for Rio Tinto and Ottawa
While details of the talks between Ottawa and Rio Tinto remain confidential, Joly emphasized that the government is “exploring targeted financial tools” to stabilize operations and protect Canadian jobs. Rio Tinto has yet to issue a public comment on the discussions.
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