GROUND WAS officially broken on Rio Tinto’s $2.6 billion investment in the Kangwinan bauxite project near Weipa today [13 November] securing the long-term future of the port and work for service suppliers.
The Queensland Government says the major milestone marked “a clear vote of confidence” in the state’s resources industry and will assure the long-term future of mining operations in Weipa and associated processing infrastructure throughout Queensland.
With Rio Tinto’s Weipa Operations among the largest bauxite operations in the world, the groundbreaking ceremony marked the commencement of activity at the new Kangwinan site and the next phase of Rio Tinto’s development plans in the West Cape York Peninsula region.
The Kangwinan project will support more than 1,300 construction jobs and secure a future for Rio Tinto’s residentially based 1,500-strong workforce, adding 20 million tonnes of annual bauxite production.
First production from Kangwinan is targeted for 2029, with full production expected by 2032, delivering future security for Queensland’s integrated aluminium value chain as global demand for aluminium continues to climb, the government says.
Kangwinan will establish a new bauxite production centre south-east of Rio’s Amrun mine, including a 15-kilometre conveyor to transport ore to expanded stockyard and wharf facilities at Amrun.
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, Rio Tinto says.
Acting Minister for Natural Resources and Mines Tony Perrett said the investment was a strong vote of confidence in Queensland’s resources sector and the future of Weipa.
“Queensland is uniquely positioned to capitalise on global resources demand with its existing integrated aluminium value chain,” Acting Minister Perrett said.
“Rio Tinto is a proven operator in Western Cape York and has the existing infrastructure, residentially based workforce and enduring community relationships needed to successfully bring the Kangwinan project online.
“Queensland is open for business, and I would like to congratulate Rio Tinto on their $2.6 billion investment – one of the most significant in recent Queensland mining history.”
Rio Tinto Pacific Operations MD Armando Torres said the investment demonstrated Rio Tinto’s long-term commitment to the future of its Weipa Operations.
“For more than 60 years, we’ve operated in Western Cape York, building a world-class bauxite business and strong, enduring relationships with Traditional Owners and local communities," Mr Torres said.
“Kangwinan and our proposed Aurukun acquisition reflect our commitment to Weipa and recognise the capability of our people. These investments will help sustain local jobs and create new opportunities for regional businesses and communities across Western Cape York.”