Rio Tinto Borates, part of Rio Tinto, extracts and processes borates used in agriculture, glass, and industry. The company plays a key role in the global borates supply chain with its primary operations located in California.
Given US Borax's long history and its integration into Rio Tinto, how does the company balance maintaining its legacy while also embracing the evolving role of borates in renewable energy, defense, and other modern industries?
US Borax is 100% owned by Rio Tinto. We’re fully integrated into Rio Tinto, and my role spans US Borax and Borax Francais, our French operations. While we’re part of Rio Tinto, we are also proudly US Borax. We’ve been part of Rio Tinto for many years and consider ourselves an essential part of the company.
US Borax started mining borates 150 years ago for soap production. Today, borates are used in agriculture, construction, fiberglass, insulation, building materials, and in everyday items like phones and computers. They’re essential in renewable energy, improving the efficiency of wind turbines and solar panels, and also in defense and aerospace, where boron carbide is used due to its hardness.
How is US Borax adapting to the growing demand for borates in niche markets like semiconductors and renewable energy?
Demand for borates continues to grow, with agriculture and heavy industrial uses still consuming most of the volume. However, niche applications like semiconductors and renewable energy are seeing significant growth. These areas are driving innovation and higher margins, though bulk products continue to dominate in terms of volume.
The demand for borates in niche markets has grown, but due to the sensitive nature of the market, we cannot share specific figures. Borates are primarily supplied by US Borax and a group in Turkey, making the market complex. Our focus is on building customer relationships and co-developing products to meet their evolving needs. We’re already present in most geographies, but we constantly assess new opportunities. Our market analysis team tracks global trends to identify opportunities within existing markets and ensure our products and logistics systems are well-positioned to meet evolving demands.
How does US Borax navigate challenges like supply chain uncertainty and competition from Turkey's lower-cost operations?
Turkey’s mining operations have a lower strip ratio, allowing them to mine closer to the surface. We compete by focusing on the quality of our products and the relationships we build with customers. Our product development is key to staying competitive, and we rely on our global sales and marketing teams to place our products effectively.
Uncertainty is a major challenge, especially with supply chains and logistics. We focus on what we can control, like reducing operating costs and improving the efficiency of our logistics. We also see opportunities in product quality and the locations of our operations, which helps us navigate uncertainty.
What factors in your supply chain are outside of your control and impacting your operations, and how do you manage them?
US Borax operates with a complex supply chain, managing a wide variety of customer orders. We focus on improving the efficiency of our downstream operations, such as packing and delivery, which directly impact production. We’re also enhancing efficiency in mining and refining processes to meet customer demand more effectively.
We cannot control global political factors, tariffs, or trade disruptions, all of which impact global trade stability. We closely monitor these disruptions and focus on mitigating risks by adapting our logistics strategies to manage the uncertainty.
How is US Borax's adoption of renewable diesel and waste repurposing initiatives directly contributing to Rio Tinto's carbon reduction goals?
Rio Tinto Borax has transitioned to renewable diesel, and we are lowering our carbon footprint. This began in 2023 and is now expanding to other Rio Tinto sites. We’ve also partnered with CR Minerals to repurpose waste materials from mining into a product that reduces the carbon footprint of cement production. Boron products are key in renewable energy, helping improve the efficiency and lifespan of wind turbines and solar panels. Rio Tinto has set a target to reduce carbon emissions by 50% by 2030 and reach net-zero emissions by 2050, with significant investments in renewable energy to help meet these goals. Rio Tinto has made significant strides in renewable energy partnerships, especially in Australia, to reduce emissions.
The 2030 target is ambitious, but we are committed to achieving it with substantial investments in clean energy projects. The fast follow of renewable diesel adoption within Rio Tinto has been due to our ability to demonstrate its viability. While I can’t speak for other companies, US Borax’s success in transitioning has encouraged other sites within Rio Tinto to adopt similar measures. Our main priority is ensuring the safety of our operations, aiming for zero fatalities and serious injuries. Alongside safety, we’re focused on sustainability, including the development of an industrial hub in California to repurpose waste products. We’re also committed to continuous product development and improving operational efficiency. The industrial hub will focus on repurposing waste products and developing the land’s potential. It’s well-positioned with good infrastructure and access to water. Companies like CR Minerals and Element Resources are already exploring projects there, including hydrogen production and solar energy, making it an attractive location for business development.
