Home » Rio Tinto Invests $1.9bn in Australian Bauxite Project

Rio Tinto Invests $1.9bn in Australian Bauxite Project

by Ikeoluwa Ogungbangbe

KEY POINTS


  • Rio Tinto will invest $1.9 billion in Queensland’s Kangwinan bauxite project.

  • The mine is expected to add 20 million tonnes of annual production capacity.

  • Construction is expected to create more than 1,300 jobs, with production starting in 2029.


Mining giant Rio Tinto has committed $1.9 billion to develop the Kangwinan bauxite project on the Western Cape York Peninsula in Queensland, Australia, as it seeks to secure the long-term future of its Weipa mining operations.

The brownfield development will use some of the infrastructure already available at Weipa to expand production and maintain supplies to international customers and domestic alumina refineries.

The project is designed to add 20 million tonnes per annum (mtpa) of bauxite production capacity. First output is expected in 2029, with the mine scheduled to reach full production in 2032.

The investment is intended to strengthen Rio Tinto’s position in the bauxite industry while supporting the company’s integrated aluminium business, which links mining operations with downstream processing.

Rio Tinto’s aluminium and lithium chief executive, Jérôme Pécresse, described the investment as a commitment to the quality of Weipa’s bauxite resources, its workforce and the communities connected to the operations.

He also characterised the development as one of Queensland’s most significant new mining investments in recent years.

New Mine to Replace Declining Production

Kangwinan is expected to gradually replace production from the Andoom mine, which is approaching the end of its operational life this decade.

The new production centre will be located about 15km south-east of Rio Tinto’s Amrun mine, which lies approximately 40km south of Weipa.

Once Kangwinan reaches full production, the capacity of Weipa Operations is projected to rise to around 44mtpa, compared with current levels of approximately 38mtpa.

The additional output is also expected to help offset the planned end of production at the Gove mine in Australia’s Northern Territory in 2029.

By expanding production at Weipa, Rio Tinto aims to maintain its bauxite supply capacity as older mining operations approach closure.

The project’s use of existing infrastructure is intended to support the expansion while connecting the new production centre to established transport and export facilities.

Conveyor and Port Upgrades to Improve Efficiency

Development plans include a 15km conveyor system to transport bauxite to expanded stockyard facilities and the existing Amrun wharf.

The wharf will also be upgraded to accommodate larger vessels, with the improvements expected to strengthen supply chain efficiency and reduce freight costs.

Early works at the Kangwinan site began in 2025. Construction activity is expected to intensify from 2027 as the project moves towards its planned first production in 2029.

The conveyor, stockyard and wharf improvements will form part of the infrastructure required to handle the additional output and transport it to customers.

Project Expected to Create More Than 1,300 Jobs

Rio Tinto expects construction of Kangwinan to create more than 1,300 construction-related jobs.

The company also anticipates that the investment will help sustain its residential workforce of approximately 1,500 people across Western Cape York over the longer term.

The project could provide continued employment opportunities for local workers and support businesses that supply goods and services to the mining industry.

Its long-term contribution will depend on the construction schedule, operational requirements and the extent to which local communities participate in employment and supply opportunities.

Pécresse said the project demonstrated Rio Tinto’s confidence in Queensland and its commitment to the communities and businesses associated with its operations.

Aurukun Acquisition Could Extend Weipa’s Future

The Kangwinan investment follows Rio Tinto’s agreement last month to acquire the neighbouring Aurukun Bauxite Project from Glencore and Mitsubishi, subject to government approvals.

Rio Tinto has indicated that the combined Amrun, Kangwinan and Aurukun operations could support its Weipa activities beyond the middle of the century.

The proposed combination of these assets would give the company additional options for maintaining bauxite production as individual deposits mature and existing mines approach the end of their operating lives.

For Rio Tinto, Kangwinan represents a major investment in sustaining production capacity, improving export infrastructure and supporting its aluminium supply chain.

The project’s progress towards first production in 2029 will be an important milestone in the company’s plans to maintain Weipa as a long-term centre for bauxite mining in Australia.

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