27th Nov 2015 06:40
LONDON (Alliance News) - Anglo-Australian miner Rio Tinto PLC on Friday said it is planning to expand output from the Amrun project in Australia after it secured approval for the USD1.9 billion project.
Amrun will involve the construction of a bauxite mine and associated processing and port facilities on the Cape York peninsula in north Queensland.
The planned initial output from the mine is 22.8 million tonnes of bauxite per year, which will replace declining production from the depleting East Weipa mine and will increase annual bauxite exports from the Cape York area by around 10.0 million tonnes.
Production and shipping are due to start in the first half of 2019, Rio said, and will ramp up to full production by the end of that year. The majority of the capital expenditure for the project will fall in 2017 and 2018.
"Amrun is one of the highest quality bauxite projects in the world. It is a tier-one asset that will deliver significant benefits to all our stakeholders," said Sam Walsh, Rio Tinto's chief executive.
"This long-life, low-cost, expandable asset offers a wide variety of development options and pathways over the coming decades. We are establishing Cape York bauxite as the product of choice for the Chinese seaborne market with consistent quality, security of supply and strong technical marketing support. Amrun will be significant in helping to meet growing bauxite demand from China," Walsh added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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