CITY OF MELBOURNE (dpa-AFX) - Rio Tinto Group (RIO.AX), a global mining company, said it will invest $1.9 billion to develop the Kangwinan bauxite project in Queensland, Australia.
The brownfield project will add 20 million tonnes of annual bauxite production capacity to the company's Weipa Operations, with first output expected in 2029 and full production by 2032. It will replace output from the Andoom mine, which is nearing the end of its life, and help offset the planned closure of the Gove mine in the Northern Territory in 2029.
The investment will increase Weipa Operations' annual production capacity to about 44 million tonnes from around 38 million tonnes currently. The project is expected to deliver an internal rate of return of approximately 22%, based on third-party market forecasts as of the fourth quarter of 2026.
Construction is expected to ramp up in 2027 and create more than 1,300 jobs. The project will also help sustain Rio Tinto's workforce of around 1,500 residential employees in Western Cape York.
The investment comes after Rio Tinto agreed last month to acquire the adjacent Aurukun Bauxite Project from Glencore, which owns 70%, and Mitsubishi, which holds the remaining 30%. The combined Amrun, Kangwinan and Aurukun operations are expected to support Weipa Operations well beyond the middle of this century.
The $1.9 billion capital estimate includes $150 million in early works approved in 2025. The investment is included in Rio Tinto's mid-term capital guidance.
'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....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,' said Rio Tinto Aluminium & Lithium Chief Executive Jrme Pcresse.
On the ASX, Rio Tinto shares closed down 2.68% at A$146.27 on Friday.
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