Rio Tinto to invest $1.9B in bauxite project
- Mining giant Rio Tinto has approved a $1.9 billion capital investment to construct the Kangwinan bauxite mine on the Western Cape York Peninsula in Queensland.
- Following the announcement, Rio Tinto shares moved lower on the Australian Securities Exchange, trading down 2.07% at $147.16.
- The new development aims to replace output from the expiring Andoom mine and offset the scheduled 2029 closure of the Gove operation.
Rio Tinto (ASX:RIO) has committed $1.9 billion to develop the Kangwinan bauxite project in Queensland to secure long-term raw material supplies for its global customers and domestic refineries.
The new mine will add 20 million tonnes of annual capacity, lifting overall Weipa operations from 38 million to 44 million tonnes per year while replacing declining output from the nearby Andoom site.
"The project represents the most significant new mining investment in Queensland in recent years and is a sign of Rio Tinto’s long-term commitment to its bauxite business, the State and our integrated mine-to-metal aluminium value chain," said Rio Tinto Aluminium & Lithium CEO Jérôme Pécresse.
The project requires constructing a 15-kilometre conveyor belt system and expanding existing stockyard and wharf facilities to accommodate larger capesize cargo vessels.
The company stated that initial bauxite production is targeted for 2029 before ramping up to full operational capacity by 2032.
Following the announcement, the Rio Tinto share price was down at $147.16.
Early site works for the Kangwinan facility originally began in 2025, roughly 15km southeast of the existing Amrun mining operations.
The development aligns with the producer's broader capital allocation plan while compensating for the planned production end at the Gove mine in the Northern Territory in 2029.
