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- Matrix Composites and Engineering (MCE) enters a joint development agreement with Rio Tinto (RIO)
- Matrix will be paid $500,000 to design and manufacture a replacement product for steel components which will be lightweight, cheaper to transport and fully recyclable
- Rio Tinto will then trial the replacement product on the overland conveyor systems at its iron ore operations in WA
- Delivery and implementation of the product to Rio Tinto for field trials is expected by mid-2023 and Matrix believes there’s potential for future orders
- MCE shares are steady on the market to trade at 24 cents at 11:43 am AEST
Matrix Composites and Engineering (MCE) has entered a joint development agreement with Rio Tinto (RIO).
Rio Tinto will provide Matrix with around $500,000 to develop and manufacture a replacement product for structural steel components. These will then be trialled on the overland conveyor systems at Rio Tinto’s iron ore operations in Western Australia.
Matrix will design and make the product from its plant in the industrial suburb of Henderson with the ability for mass production.
This agreement allows Matrix to utilise its knowledge to create a product that’s much lighter than steel, decreases handling risk and is cheaper to transport than traditional alternatives. The product will also be corrosion-free and 100 per cent recyclable.
Matrix Composites and Engineering CEO Aaron Begley said this agreement represents another key step in demonstrating the potential for advanced composite solutions in the resources sector.
“Rio Tinto has hundreds of kilometres of overhead conveyors across their WA iron ore operations, and a successful trial of our innovative product will position us to secure larger-scale contracts over the long term,” Mr Begley said.
“The patented, cost-effective and environmentally efficient solution we are developing can also be utilised across all iron ore, alumina, nickel, gold and other hard rock mining installations, exposing us to a tangible large scale market opportunity.”
Delivery and implementation of the product to Rio Tinto for field trials is expected by mid-2023. Depending on the trials, Matrix believes there’s potential for future orders from Rio Tinto and other companies across the mining sector.
MCE shares were steady on the market to trade at 24 cents at 11:43 am AEST.
