LONDON (dpa-AFX) - Rio Tinto (RTPPF.PK, RIO.L, RIO, RTNTF.PK) announced that it will begin early works and conduct final engineering studies to increase production capacity at the Amrun bauxite mine on Cape York Peninsula in Far North Queensland, aiming for first output as early as 2029.
The project, named Kangwinan at the request of Traditional Owners, the Wik Waya people, will involve building a new mine and expanding the existing port to almost double bauxite production from Rio Tinto's Weipa Southern operations, where Amrun is located.
The company noted that production from the Kangwinan project would replace output from the Andoom mine in Cape York and the Gove mine in the Northern Territory, which are both expected to close toward the end of the current decade.
If approved, the project will establish a mining centre 15 kilometres south-east of Amrun, which was constructed at a cost of US$1.9 billion and opened in 2018. The proposed expansion would increase annual bauxite production capacity from Rio Tinto's Weipa Southern operations, by up to 20 million tonnes, in addition to the current 23 million tonnes, and expand export capacity through the Amrun port.
The company noted that Kangwinan will generate more than 800 jobs in construction and would maintain the workforce currently employed at Weipa's mines slated for closure.
The approved early works include building a 250-room camp at Amrun Village to house construction workers and developing an initial access road to the Kangwinan area.
A final investment decision is due in 2026, subject to cultural heritage consultation with Traditional Owners, completing engineering, cultural heritage and environment studies, as well as securing regulatory and other approvals.
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