Rio Tinto Group (RIO), a company engaged in exploring, mining, and processing mineral resources, has steadily increased by 0.016% in aftermarket trading session and is trading at $60.72 at the time of the writing. On Friday, RIO closed the day at $60.71 after increasing 1.35% during regular trading hours. The steady but constant increase is attributable to the ownership of Diavik Diamond Mine.
Why RIO Rising?
On Thursday, RIO announced that it had taken full control of Canada’s biggest diamond mine, namely the Diavik Diamond Mine. The mine was previously owned by billionaire Dennis Washington. The company already had a 60% stake in the mine. It has bought the share previously held by the Dominion Diamond Mines. Dominion filed for insolvency protection in 2020 after the pandemic harmed the diamond trade throughout the globe.
Increase Low Carbon Al Production
On 17th November, RIO announced that it is investing $87 million to increase the production of low carbon aluminium with 16 new smelting cells at the AP60 smelter in Quebec, Canada. As a result of the investment in low carbon aluminium production, the production at smelter would increase around 45% and also would provide a secure future to approximately 100 employees at the site. The company has projected the global aluminium growth to stand at a rate of 3.3% per annum throughout the next decade with the ever-increasing demand.
Investment in InoBat Auto
On 16th November, RIO announced that it is supporting the development of the battery ecosystem in Europe by investing in Inobat Auto (InoBat). InoBat is a European based battery technology and manufacturing company. As a result of the investment, the company would be able to support the completion of InoBat’s research and development centre and pilot battery line in Voderady, Slovakia. A Memorandum of Understanding signed in May served as the precursor to the investment.
Future Outlook for RIO
Statistics reveal that the last few months have not been up to the mark for RIO stock. The prime reason for that is the impact of the pandemic on mining activities. However, the recent policy announcements by the company could serve as a positive stimulant for the RIO stock in upcoming quarters.
