Rio Tinto Announces $1.9 Billion Investment for New Queensland Bauxite Project

Mining giant Rio Tinto has announced a $1.9 billion investment to develop the Kangwinan bauxite project located on the Western Cape York Peninsula in Queensland, Australia. This significant capital expenditure is designed to bolster the company's long-term bauxite production, ensuring a steady supply for both international customers and domestic alumina refineries.

The project is expected to add 20 million tonnes of annual bauxite production capacity to the company's existing Weipa operations. According to the company, construction is slated to ramp up in 2027, with the first output targeted for 2029 and full production capacity anticipated by 2032. Once fully operational, the project will increase the total annual capacity of the Weipa site to approximately 44 million tonnes, up from the current output of 38 million tonnes per year.

This strategic investment serves as a replacement for the aging Andoom mine, which is nearing the end of its operational life. Furthermore, the Kangwinan project is intended to help compensate for the scheduled closure of the Gove mine in the Northern Territory, which is also set to cease production in 2029. By leveraging existing infrastructure, the company intends to maintain its status as a leading global producer of high-quality bauxite.

Jérôme Pécresse, Chief Executive of Rio Tinto Aluminium & Lithium, described the project as a strong vote of confidence in the region and its workforce. "The project represents the most significant new mining investment in Queensland in recent years and is a sign of Rio Tinto’s long-term commitment to its bauxite business, the State and our integrated mine-to-metal aluminium value chain," Pécresse stated.

The development is expected to have a substantial economic impact on the region, with construction activities projected to support more than 1,300 jobs. In the long term, the project aims to sustain a residentially based workforce of approximately 1,500 people in Western Cape York. The company also noted that it is working closely with the Wik Waya Traditional Owners to minimize impacts on cultural heritage and to ensure the project provides sustainable benefits to local communities.

In addition to the Kangwinan development, Rio Tinto has taken steps to secure its future growth in the area by agreeing to acquire the adjacent Aurukun Bauxite Project, pending government approval. Together, these initiatives are intended to support the company's integrated aluminium operations well beyond the middle of this century, reinforcing the company's commitment to its Australian mining assets.