Rio Tinto has signed a renewables agreement with the Yindjibarndi Energy Corporation and is aiming to make a final investment decision on a large solar installation in the Pilbara by the end of 2024.
Rio announced on Friday it had entered into a memorandum of understanding with the Yindjibarndi Energy Corporation (YEC), marking its first renewables agreement with an Indigenous group. The MOU will assess a range of clean energy opportunities including wind and solar and battery energy storage systems to decarbonise its Pilbara iron ore operations.
The Yindjibarndi Aboriginal Corporation has been in a legal bitter dispute with Fortescue over a native title dispute at the Solomon iron ore hub.
Fortescue commenced mining at Solomon in 2013 with the native title owners currently seeking $500 million in compensation.
The first project Rio is targeting under the MOU is a solar farm between 75MW and 150MW located 50 kilometres inland from Karratha on Yindjibarndi native title area.
YEC will be owner of the project with the energy to supply Rio’s Pilbara network.
The project is expected to reach a final investment decision by the end of 2024 and if approved construction is slated to commence in 2025.
Rio operates four gas-fired power stations in the Pilbara and will need to produce between 600MW to 700MW to make renewable energy sources the majority of its energy consumption in the region.
The company is currently assessing 300MW of solar projects in addition to the YEC MOU.
Speaking to media in Roebourne on Friday, Rio Tinto iron ore boss Simon Trott said the MOU was part of Rio’s $US3 billion commitment to decarbonise its business in the Pilbara.
“The idea as we go forward is to have a mix of renewable energy arrangements — owner-operator like you saw at Guadi-Darri — together with third-party arrangements like the one we are talking about today for our network to displace the gas and diesel we use,” Mr Trott said.
At its Guadi-Darri iron ore project Rio owns a 34 MW solar farm containing around 81,000 panels.
Yindjibarndi Aboriginal Corporation chief executive Michael Woodley said the MOU would benefit “our community, our country, and our world” whilst preserving areas of cultural significance.
“Yindjibarndi Ngurra is ideally suited to developing renewable energy generation and our people are encourage by Rio Tinto’s interest in building this capacity with us,” Mr Woodley said.
The YEC was established in June following an agreement between the Yindjibarndi Aboriginal Corporation and renewable energy developer ACEN Corporation.
It aims to progress renewable energy projects across an area covering around 13,000 square kilometres within the Yindjibarndi Native Title Determination Areas.
The reporter travelled to the Pilbara as a guest of Rio Tinto.