Fossil fuel company to invest $200 million in US
Fossil Fuel and mining company Rio Tinto announced Tuesday that it will invest $20 million in a partnership to develop coal mining and export terminals in the US.
The new investments come as US President Donald Trump and other global leaders gather in Pittsburgh for the United Nations General Assembly on Thursday, where the Trump administration is expected to call for major cuts to carbon emissions.
“We’re going to be investing a lot in coal,” Rio Tintin CEO Ian Goodfellow said in a conference call with investors.
Rio Tinsaflor, the company’s parent company, has an estimated $1 trillion in assets.
The investment is part of the company taking on a much larger role in mining coal in the United States, a trend that began in the 1960s.
Rio has a presence in more than 200 mines around the country, but its largest mine, the Rio Rio Tino Gold Mine in Wyoming, closed in 2019 after a string of mine accidents.
The Rio Tincan Gold Mine closed due to safety concerns.
At least four of Rio’s mines have since reopened.
“There is a real risk of an escalation in the amount of coal in America,” said Goodfould, the former chairman of Rio Ticos Minerals.
“Coal is going to go down.
We need to look at our supply chain and think about what we need to do to mitigate the risks and how we can minimize those risks.”
Rio said it expects to generate $40 million in new revenue and another $40 to $50 million in costs, depending on the projects it chooses to invest in.
The company’s other coal mines include the Rio Tinos mine in New York, which has become a magnet for the industry’s coal miners because of its proximity to the Hudson River, and the Rio Amaret Mine in New Mexico, which is about 60 miles south of Las Vegas.
Rio’s investment comes as the US faces rising temperatures, including a temperature increase of 6 to 7 degrees Fahrenheit over the next 50 years, and a number of other factors that have contributed to coal’s decline.
President Donald Trumps first trip to the United Kingdom to attend the U.N. General Assembly was postponed because of the climate change summit, but he has continued to push for a global agreement to combat climate change.
Last week, he called for the development of an international agreement to reduce carbon emissions by the year 2035, which he said would put the United State at a “leadership position.”
The Trump administration has been pushing for a carbon tax in order to reduce emissions.
Trump has said he supports a carbon market, which would be a voluntary market for carbon-intensive fossil fuels.
“The Trump administration supports an international treaty that would create an international market for a tax on carbon emissions,” Goodforth said.
“That would be the first step toward getting a tax.”
The White House also has pushed for a $15 per tonne tax on all fossil fuels, which it has not proposed.
The Trump Administration’s plan to reduce greenhouse gas emissions in the U;s was also met with resistance from the coal industry, which says that an increase in CO2 emissions will harm coal companies.
The President’s plan, which also includes creating a federal reserve fund to pay for the climate deal, has also been met with opposition from the fossil fuel industry.