Rio Tinto OKs $180M expansion at Amrun bauxite mine

Rio Tinto (ASX, LSE: RIO) has approved a $180-million investment in the Norman Creek bauxite project on Queensland’s Cape York Peninsula, aiming to unlock nearly half of the 978 million tonnes in reserves across its Amrun operation.

Construction is already underway, including a 19-km haul road, camp facilities and a communications tower. First production is targeted for 2027, with full project completion expected in 2028.The Amrun mine, which began operations in 2018, recently reached full production capacity for the first time. 

“Norman Creek is another important step in securing the long-term future of our Weipa operations, and the benefits that mining brings to communities in the region, Queensland, and the nation,” Rio Tinto Pacific Operations Aluminium Managing Director Armando Torres said.

Bauxite is primarily used as the main raw material for producing alumina, which is then used to create aluminum metal. The investment will be recorded as replacement capital and is already included in the company’s capital forecast.

Kangwinan project

In addition to the Norman Creek project, Rio Tinto has begun early works and a final feasibility study on the Kangwinan project, also located within the Amrun mine.

If approved, Kangwinan would add up to 20 million tonnes of annual bauxite capacity, almost doubling current output, and expand export capabilities through the Amrun port.

Named by the Wik Waya Traditional Owners, the Kangwinan project is expected to replace declining production from the Andoom mine and the Gove operation, both slated to wind down later this decade. First output from Kangwinan could arrive by 2029.