Rio Tinto (ASX:RIO) has committed US$1.9 billion ($2.7 billion) to the development of the Kangwinan Bauxite Project in Western Cape York, Queensland, targeting first output in 2029.
The total includes US$150 million for early works pre-approved in 2025. Construction ramps up in 2027.
Kangwinan will establish a new bauxite production centre 15km southeast of the Amrun mine, which is located 40km south of the town of Weipa. A 15km conveyor will carry ore to expanded stockyards and the existing Amrun wharf, which will be upgraded to take capesize vessels to cut freight costs.
The project replaces output from the Andoom mine as it nears the end of its life. It adds 20 million tonnes (Mt) a year of bauxite capacity at Weipa and reaches full production by 2032, lifting annual capacity at Weipa Operations to about 44Mt from around 38Mt.
It also offsets the planned end of production at the Gove mine in the Northern Territory in 2029.
Rio expects an internal rate of return of about 22%, based on third-party market forecasts as at Q4 2026, with spending falling within its mid-term capital guidance.
The company’s Aluminium and Lithium chief executive Jérôme Pécresse says the project reflects “the most significant investment in Queensland in recent years”.
“Kangwinan is a strong vote of confidence in Weipa, in the quality of its bauxite, the capability of its workforce, and the future of the communities and businesses closely connected to our operations,” Pécresse says.
“For more than 60 years, we have operated in Western Cape York, building a world-class bauxite business and enduring relationships with Traditional Owners and local communities.
“Cultivating and expanding that ongoing partnership will be critical to the long-term success of our operations.
“This investment will support jobs, create opportunities for local and regional businesses, and help us continue supplying our customers with the high-quality bauxite they have relied on for decades.”
Separately, the company also agreed to acquire the adjacent Aurukun Bauxite Project from Glencore (LSE:GLEN) (70%) and Mitsubishi (TYO:7211) (30%), subject to government approvals. Environmental permits are in place under the South of the Embley environmental impact statement.
Rio Tinto is a multinational mining and metals corporation operating across 30,000 countries.
Write to Paula Fabe at Mining.com.au
Main image: Rio Tinto
