Rio Tinto to Develop Australian Bauxite Project

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

London-based mining major Rio Tinto has announced plans to spend up to US$1.9 billion to develop the ​Kangwinan bauxite project in Queensland, Australia.

Plans Confirmed

Rio Tinto has confirmed plans to develop the ​Kangwinan bauxite project in Queensland, Australia, with a total investment of up to US$1.9 billion. 

The decision comes as the Australian government revamped its Critical Minerals Strategy with a focus on boosting homegrown refining and processing. Located in the  Weipa region of Western Cape York, one of the world's largest and most active bauxite-producing areas, the Kangwinan project will replace production from the Andoom ​mine near Weipa, which will reach the end of its ‌life in the next few years. It will add 20 million tonnes (MT) of annual bauxite production capacity in Weipa, leveraging some existing infrastructure, with first output targeted in 2029 and full production expected by 2032. According to Industrial Info Resources data, there are eight Kangwinan projects worth US$456 million in investment. 

The Project

Kangwinan sits 15 kilometres (km) southeast of Rio Tinto's Amrun mine, which is located 40 km south of the town of Weipa. A 15-km conveyor will transport ore from Kangwinan to expanded stockyard facilities and the existing Amrun wharf. Kangwinan will help boost bauxite production from Weipa operations to about 44 MT annually, up from current production levels of 38 MT per year. Rio said it would also "help compensate for the planned end of production at the Gove mine in the Northern Territory in 2029." In September, Rio agreed to buy ​the adjacent Aurukun Bauxite Project from Glencore and ​Mitsubishi, in a move that it said would keep its Weipa bauxite operations running well beyond the middle of the ​century. 

The Company Take

Rio Tinto Aluminium & Lithium Chief Executive Jérôme Pécresse said: "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." Construction will ramp up in 2027 and is expected to support more than 1,300 construction jobs. Rio Tinto employs around 1,500 people in its Western Cape mining operations.

Revamped Critical Minerals Strategy

Last month, the Australian government revamped its Critical Minerals Strategy 2023-2030, placing more emphasis on higher value refining and processing endeavours and working closer with allies like the European Union (EU) and the U.S. The 2026 review of the strategy comes at a time of increased global unrest and competition for supplies and investment. "The global context has changed significantly since the government released the Critical Minerals Strategy 2023--2030," said Minister for Resources Madeleine King. "Concentrated market power, export controls and geopolitical competition has disrupted supply chains that modern economies rely on. This is reshaping global supply chains around greater resilience, trust, security and strategic alignment. Without secure and diversified supply chains, we cannot deliver the economic resilience, industrial capability and national security outcomes that Australians expect."

Earlier this year, Australia announced its planned Critical Minerals Strategic Reserve, designed to stockpile critical minerals to bolster its own supply but to also act as a trading conduit for allied nations. The first minerals to be focused on include antimony, gallium and rare earth elements--all of which are now largely controlled by China. In the past year, Australia has signed agreements with the EU, the U.S. and Canada among others with regard to supplying critical minerals in return for financing Australian projects. For additional information, see January 16, 2026, article - Australia to Stockpile Critical Minerals.  

Key Takeaways

• Rio Tinto will spend up to US$1.9 billion to develop the ​Kangwinan bauxite project in Queensland, Australia.
• It has also agreed to buy ​the adjacent Aurukun Bauxite Project from Glencore and ​Mitsubishi.
• Industrial Info Resources is tracking eight Kangwinan projects worth US$456 million in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).