With recycled aluminium forecast to account for more than half of United States demand by 2028, Rio will spend around US$700 million to buy a 50% share of Matalco from Giampaolo, described as one of North America's largest fully integrated metal management businesses with six facilities across the US and one in Canada.

 

Giampaolo will be responsible for the supply of recyclable feed to the joint venture, while Rio will handle sales and marketing, expanding Matalco's access to new customers.

 

Rio said Matalco has capacity to produce some 900,000 tonnes per annum of recycled aluminium and is positioned to grow and meet increased demand for low-carbon aluminium. 

 

Rio CEO Jakob Stausholm said the investment was a natural extension of its existing primary aluminium business, and expand its range of products.

 

Rio shares were steady today at A$116.58, valuing it at $189 billion.