Rio Tinto confirms investment of $1.9B to develop Kangwinan bauxite project in Qld

• Investment will underpin long-term future of Weipa operations
• Adding 20 million tonnes of annual bauxite production capacity in Weipa
• Will sustain Rio’s position as world leading high-quality bauxite producer
• Project represents most significant new mining investment in Queensland in recent years

Rio Tinto (ASX: RIO) has confirmed its commitment to the historic Weipa area in northern Queensland with a $1.9 billion investment to develop the Kangwinan bauxite project.

Rio Tinto Aluminium & Lithium chief executive, Jérôme Pécresse, said the Kangwinan funding underpins the long-term future of the Weipa operations and continued supply to the company’s international customers and its Australian alumina refineries.

“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,” Mr Pécresse stated.

“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.

“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.

“As Kangwinan moves forward, and with the planned acquisition of the Aurukun Bauxite Project, we will keep listening and working together to create lasting value for Western Cape York, while respecting the connection Traditional Owners have to Country and making sure they continue to benefit sustainably from 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.”

Kangwinan will add 20 million tonnes of annual bauxite production capacity in Weipa, leveraging some existing infrastructure, with first output targeted in 2029 and full production expected by 2032.

The project will replace production from the Andoom mine near Weipa as it reaches the end of its life this decade, while increasing Weipa Operations’ annual capacity to about 44 million tonnes, from current production of around 38 million tonnes per year. It will also help compensate for the planned end of production at the Gove mine in the Northern Territory in 2029.

In addition to its Kangwinan investment, Rio Tinto last month agreed to acquire the adjacent Aurukun bauxite project from current owners Glencore and Mitsubishi to support its long-term growth plans in Western Cape York.

The combined Amrun, Kangwinan and Aurukun operations are expected to support Weipa Operations well beyond the middle of this century.

RIO is steady at $149.62 with a Mkt cap of $244.4B prior to markets opening.

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