23rd Oct 2026 01:16
(Alliance News) - Rio Tinto PLC and Ltd on Friday said it will invest USD1.9 billion to develop the Kangwinan bauxite project on Western Cape York Peninsula in Queensland.
The London and Melbourne, Victoria-based diversified miner said the project will establish a new bauxite production centre 15 kilometres south-east of its Amrun mine, which itself is 40 kilometres south of the town of Weipa.
Early works at Kangwinan began in 2025.
Rio Tinto said: "This brownfield investment will leverage Rio Tinto's project execution capability and reflects continued application of the company's disciplined capital allocation framework. It will add 20 million tonnes of annual bauxite production capacity in Weipa, leveraging some existing infrastructure, with first output targeted in 2029 and full production expected by 2032.
"The project will replace production from the Andoom mine near Weipa as it reaches the end of its life this decade, while increasing Weipa Operations' annual capacity to about 44 million tonnes, from current production of around 38 million tonnes per year. It will also help compensate for the planned end of production at the Gove mine in the Northern Territory in 2029."
Ore will be transported from Kangwinan on a 15 kilometre conveyor to expanded stockyard facilities and the existing Amrun wharf, which will be expanded to accommodate larger capesize vessels.
Rio Tinto expects construction to ramp up in 2027, supporting more than 1,300 construction jobs.
"Longer term, the project will help sustain Rio Tinto's residentially based workforce of around 1,5000 people in the Western Cape," the company added.
Shares in Rio Tinto fell 2.2% to AUD147.05 each in Sydney on Friday morning.
By Elijah Dale, Alliance News senior reporter Asia-Pacific
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