Rio Tinto $RIO (-1.52%) wants to increase the capacity of its Amrun bauxite mine in the Australian state of Queensland. The mining group has announced that it is carrying out initial work to expand capacity.
Rio Tinto wants to ensure that it has enough bauxite available for its alumina plants and customers.
The project, called Kangwinan, includes a new mine and an expansion of port capacity, which would allow Rio Tinto to almost double its bauxite production in the Weipa Southern region, where Amrun is located. First production is planned around 2029, Rio Tinto said.
Production from the Kangwinan project will replace the loss of the Adoom mine in Queensland and the Gove mine in the Northern Territory, which Rio Tinto expects to close towards the end of the decade.
The aluminum oxide that Rio Tinto produces in its refineries in Queensland will be processed into aluminum in aluminum smelters in Australia and New Zealand. Rio Tinto intends to make the final investment decision in 2026.
A bauxite production capacity of up to 20 million tons would be added in Weipa Southern. The current capacity is around 23 million tons. According to the company, early work such as a camp for construction workers and an access road have already been approved.