Rio Tinto will begin preliminary works and final engineering studies to nearly double production from its Amrun bauxite mine in far north Queensland, Australia, by 2029.
The project was named Kangwinan at the request of the traditional owners, the Wik Waya people. It will see the construction of a new mine and the expansion of the existing port.
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This development will increase annual bauxite production capacity from Rio Tinto’s Weipa Southern operations, where Amrun is situated, by up to 20 million tonnes (mt), in addition to the current 23mt.
The Amrun mine was developed at a cost of $1.9bn (A$2.96bn) and opened in 2018.
Production from Kangwinan is expected to replace the output from the Andoom mine in Cape York and the Gove mine in the Northern Territory, which are set to close by the end of this decade.
The expansion will generate more than 800 construction jobs and sustain the workforce currently employed at Weipa’s mines.
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By GlobalDataEarly works approved for the project include the construction of a 250-room camp for construction workers at Amrun Village and the development of an access road to the Kangwinan area.
A final investment decision (FID) on the project is expected in 2026, pending consultations with traditional owners, completion of engineering, cultural heritage and environmental studies, as well as securing regulatory and other approvals.
Rio Tinto Pacific Operations Aluminium managing director Armando Torres said: “This feasibility study will explore a new bauxite operation at our Weipa Operations and represents a strong vote of confidence in the world-class bauxite deposits on the Western Cape York Peninsula, our bauxite operations and the local community.
“It is an important step toward securing the long-term future of our operations at Cape York, and the benefits that mining brings to communities in the region, while ensuring security of supply to our Australian refineries and to our customers.”
Earlier this month, Rio Tinto signed binding agreements with Codelco to establish a joint venture to develop the Salar de Maricunga lithium project in Chile.
