Company Interview / The small cap recycling with Rio

Luke Hawkins from Capral (ASX: CAA) discusses their collaboration with Rio Tinto on a new recycled aluminium project. They introduce an innovative closed-loop recycling process in Queensland, aiming to transform 20% of scrap from their manufacturing into new billet, reducing dependency on offshore recycling.

Luke mentions that the scrap, now recycled locally, previously went offshore. The collaboration seeks to enhance onshore circular solutions, leveraging the entire Australian value chain. He shares that Capral has already launched lower-carbon aluminium products and completed trials with Tomago smelter.

Future plans include optimising the process, potentially raising the recycled content. Although existing equipment was used for the trial, further investment will be necessary. Luke addresses industry dynamics, monitoring global factors like US tariffs, anti-dumping measures against Chinese aluminium, and supply-demand fluctuations influenced by Chinese stimulus.