Rio Tinto (ASX: RIO) said on Friday it will invest $1.9 billion to develop the Kangwinan bauxite project in Queensland, Australia, replacing output from its ageing Andoom mine and lifting annual production capacity at its Weipa bauxite operations.
The miner said the investment would add 20 million tonnes of annual bauxite production in Weipa, with first output targeted in 2029 and full production expected by 2032.
Located in Queensland, Weipa is one of the world’s largest bauxite mining complexes. It supplies the ore to make alumina and aluminium for applications ranging from construction and transportation to packaging and renewable energy infrastructure.
Kangwinan will replace production from the Andoom mine near Weipa as it reaches the end of its life this decade, while increasing Weipa’s annual production capacity to about 44 million tonnes from around 38 million tonnes currently.
The development will also help offset the planned 2029 closure of Rio’s Gove bauxite mine in the Northern Territory.
The announcement follows Rio’s agreement last month to acquire the adjacent Aurukun Bauxite Project from Glencore (LON: GLEN) and Mitsubishi, subject to regulatory approvals, as it seeks to extend long-term growth in the region.
Rio said the combined Amrun, Kangwinan and Aurukun operations are expected to support its Weipa bauxite business well beyond the middle of the century.
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Shreya Biswas)
