By Adriano Marchese

Rio Tinto Iron Ore Company of Canada was awarded 18.1 million Canadian dollars ($13.4 million) to support the company's reduction of heavy fuel during production in Newfoundland and Labrador.

The company said Monday it will use the funding to install an electric boiler to displace emissions from the usage of the heavy fuel oil boilers at its Labrador West project, as well as instrumentation and fuel efficient burners.

This will help reduce the heavy fuel usage consumed during the production of iron-ore pellets and concentrate by about 2.2 million metric tons of greenhouse gas emissions over the lifetime of the project, or about 9% of the company's total emissions.

The company expects to install the new equipment in the second quarter, with final completion aimed for the first half of 2025.

The Canadian government's contribution represents about 25% of the full cost of the project, with the company funding the remainder of the investment, it said.

Write to Adriano Marchese at

(END) Dow Jones Newswires

02-26-24 1417ET