AUSTRALIA —Rio Tinto has approved a USD 1.9 billion investment to develop the Kangwinan bauxite project on Western Cape York Peninsula in Queensland, Australia. The brownfield development will add 20 million tonnes of annual production capacity to its Weipa operations, increasing the operation's total annual capacity to approximately 44 million tonnes from current production of around 38 million tonnes. First output is targeted for 2029, with full production expected by 2032.
The project is intended to replace output from the Andoom mine as it approaches the end of its operating life later this decade and help offset the planned closure of production at the Gove mine in the Northern Territory in 2029. Maintaining this supply is strategically important for Rio Tinto's bauxite business, international customers and Australian alumina refineries, which depend on reliable raw-material flows.
Kangwinan will be developed approximately 15 kilometres southeast of the Amrun mine, around 40 kilometres south of Weipa. A new 15-kilometre conveyor will connect the production area to expanded stockyard facilities and the existing Amrun wharf. Planned wharf expansion will enable it to handle larger Capesize vessels, potentially improving shipping efficiency and lowering freight costs. The project will use some existing infrastructure, while construction activity is expected to ramp up in 2027.
Construction is forecast to support more than 1,300 jobs, while the longer-term development is intended to help sustain Rio Tinto's residential workforce of approximately 1,500 people in Western Cape York. Local contractors, equipment suppliers, transport providers and other regional businesses may benefit from project-related demand. Engagement with Traditional Owners and local communities will remain an important consideration as development progresses.
The investment also forms part of Rio Tinto's broader plans for its Western Cape York bauxite assets. The company has separately agreed to acquire the adjacent Aurukun Bauxite Project from Glencore, which owns 70%, and Mitsubishi, which owns 30%, subject to government approvals. Rio Tinto expects the combined Amrun, Kangwinan and Aurukun operations to support Weipa's activities well beyond the middle of this century. The proposed Aurukun transaction is separate from the Kangwinan capital commitment.
Rio Tinto is a global mining group producing iron ore, aluminium-related materials, copper and other minerals. Its Kangwinan investment is replacement capital expenditure included within its medium-term capital guidance; the USD 1.9 billion estimate includes USD 150 million for early works approved in 2025. The company estimates an internal rate of return of approximately 22%, based on third-party market forecasts from the fourth quarter of 2026. For the wider bauxite and alumina supply chain, the development signals continued investment in Australian raw-material capacity, with execution, infrastructure delivery, market conditions and regulatory approvals influencing the project's eventual contribution.
