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Rio Tinto warns of excess globalisation in supply chains for critical metals

Miner plans $500mn Canadian investment to source titanium and scandium in west rather than from China

The boss of Rio Tinto has warned of the “excesses of globalisation” in critical mineral supply chains as the Anglo-Australian miner and Canadian government plan a C$737mn ($537mn) investment to loosen China’s stranglehold over metals vital to aerospace and defence.

Rio announced on Tuesday that it will modernise the Sorel-Tracy site in Quebec to bolster the supply of minerals controlled by China while reducing emissions at the site by introducing a new smelter technology.

The mining group will start producing titanium metal and quadruple scandium oxide output to 12 tonnes annually; the materials are essential to aerospace, medical products and fuel cells. China produces three-quarters of finished titanium products and 61 per cent of scandium globally, according to Project Blue, a consultancy.

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