Rio Tinto signs renewable energy deal with Yindjibarndi Aboriginal Corporation in the Pilbara

Pilbara traditional owners have signed a landmark agreement to potentially build a solar energy project to help power Rio Tinto’s sprawling WA iron ore empire.

Pilbara traditional owners have signed up Rio Tinto as the foundation customer for its ambitious plan to build a major renewable energy hub to feed the state’s giant iron ore industry, as Yindjibarndi Aboriginal Corporation takes another step forward with its commercial ambitions.

YAC’s renewable energy arm, Yindjibarndi Energy Corporation (YEC), on Friday announced it had signed a memorandum of understanding to examine the feasibility of building 75 to 150 megawatts of solar energy, just outside Dampier, to potentially feed Rio’s decarbonisation plans for its sprawling Pilbara iron ore empire.

Rio Tinto’s railway and other infrastructure crosses Yindjibarndi country, and the mining major updated and modernised its agreements with the traditional owner group a year ago.

Speaking outside Dampier on Friday, YAC chief executive Michael Woodley said the MOU will strengthen the existing partnerships between the two groups, as well as help support indigenous communities in the Pilbara.

“From our point of view it’s exciting to be a part of the renewable energy project and to contribute to decarbonisation, and assisting the industry - which in this area has been operating for the last 60 years,” he said.

“A program like this will support employment and training, and contribute to the local economy as well. So we obviously see multiple spin offs and opportunities that could help us be a leader in this space and to help our communities.”

YEC launched its ambitious plan to build up to 3 gigawatts of solar and wind renewable energy projects in WA’s heartland iron ore district in June, after cutting a joint venture agreement with Philippine-listed ACEN.

YEC chief executive Craig Ricarto said the indigenous group would retain at least a 25 per cent stake in each of the projects, assuming they reached final investment decision, and could hold up to a 50 per cent stake in some renewable energy projects under consideration.

Rio Tinto has said it needs to build 600MW to 700MW of renewable generation to displace the majority of gas use across its network, and is currently assessing the development of approximately 300MW of solar projects.

Mr Ricarto told reporters YEC already had undertaken environmental studies into the concept underway, and hoped to finalise approvals - and a final investment decision - for an initial phase of the renewable energy array by the end of 2024.

YEC and ACEN then hoped to begin construction in early 2025, with the initial power to be fed into Rio’s private network within 12 to 18 months.

Rio iron ore boss Simon Trott said the MOU with YEC was one of a range of options the iron ore giant was considering to decarbonise its Pilbara mines.

We’ll have a mixture of arrangements both our own - owner-operated, such as the one at Gudai-Darri (in the Pilbara), together with third party arrangements like the one that we’re talking about today,” he said.

“That would feed into our network and displace gas that we use and diesel that we use and help us meet those emissions targets.”