April 2025 | Minener.com
Global mining heavyweight Rio Tinto is making a strategic return to India, exploring a major investment in green aluminium production in partnership with AMG Metals & Materials (AMG M&M)—a venture led by the founders of renewable energy pioneer Greenko Group.
The collaboration marks a significant shift for Rio Tinto, which had exited India nearly a decade ago after abandoning its rough diamond project at the Bunder mines in Madhya Pradesh due to environmental opposition and regulatory hurdles. This time, the Anglo-Australian miner is aligning its comeback with India’s renewable energy ambitions.
According to sources close to the project, the two partners are assessing the feasibility of developing an aluminium smelter with an annual capacity of up to 1 million tonnes, alongside 2 million tonnes of alumina refining capacity, all powered by a combination of solar, wind, and pumped hydro storage. The first phase of the project could involve a 500,000-tonne-per-year smelter at a yet-to-be-decided location.
While AMG M&M will take the lead on integrating renewable energy infrastructure with support from Greenko, Rio Tinto will focus on securing a viable alumina supply chain and evaluating the most cost-effective smelting technologies. The estimated total investment is expected to range between $5 billion and $7 billion.
Strategic Timing for India’s Aluminium Sector
This move comes at a time when India is both the world’s second-largest aluminium producer and its third-largest consumer, with domestic demand projected to double over the next decade. The Indian aluminium market currently stands at around 5 million tonnes per annum (MTPA), led by Hindalco (Aditya Birla Group), Vedanta, and state-owned NALCO.
Aluminium’s growing importance in the global push for decarbonization—thanks to its recyclability and extensive industrial applications in transportation, power, construction, and packaging—makes India a compelling location for investment. Demand for primary aluminium globally has already hit 70 MTPA, and Indian policy now supports 100% foreign direct investment (FDI) under the automatic route for mining and ore exploration.
Industry Leaders on Board
“India’s growth trajectory, strategic positioning, and commitment to clean energy make it an ideal partner in our vision to build a more resilient and diversified global aluminium business,” said Jérôme Pécresse, CEO of Rio Tinto Aluminium.
Greenko and AMG M&M co-founder Mahesh Kolli added, “Over the years, we’ve pioneered large-scale decarbonisation solutions. With this new initiative, we’re extending that expertise into the materials space.”
Renewable Energy Backbone
Greenko Group, through its affiliates, is one of India’s largest renewable energy developers, with 10 GW of operational capacity across solar, wind, and hydro, and plans to build 100 GWh of energy storage. In parallel, Greenko’s sister venture AM Green is advancing green ammonia projects aiming for 5 MTPA of capacity by 2030. Its first facility, under construction in Kakinada, will produce 1 MTPA of green ammonia.
Rio Tinto’s Global Role
With 2024 revenues reaching $53.6 billion, Rio Tinto is one of the world’s leading diversified miners, with core operations in iron ore, aluminium, copper, lithium, borates, and titanium dioxide. The company has recently doubled down on sustainability-focused ventures, including green metal initiatives and low-carbon supply chains.
For more on sustainable mining initiatives, read our article on Chile’s Rare Earth Strategy.