Rio Tinto Plans US$1.9 Billion Investment in New Australian Bauxite Project, Production Expected in 2029

en.Wedoany.com Reported - On October 23, Rio Tinto announced a US$1.9 billion investment to develop the South Conway bauxite project on the western Cape York Peninsula in Queensland, Australia. The new mine is scheduled to begin ore production in 2029 and reach full capacity in 2032, with a designed annual capacity of 20 million tonnes. Once completed, the project is expected to raise the annual capacity of Rio Tinto's Weipa operations to approximately 44 million tonnes, replacing output from local mines that are nearing the end of their production life.

The South Conway deposit is located approximately 15 kilometers southeast of the existing Amrun bauxite mine and about 40 kilometers from the town of Weipa. The new development will include a bauxite production hub and a 15-kilometer ore conveyor that will transport mined bauxite to an expanded stockyard at the Amrun site, from where it will be shipped via the existing port facilities. Port works also include expanding the Amrun wharf to accommodate larger Capesize bulk carriers.

Rio Tinto began early works on the project in 2025, including construction of a 250-room construction camp and initial access roads to the South Conway deposit. The US$1.9 billion total investment includes US$150 million in early works costs previously approved. Under the latest construction schedule, main construction will accelerate in 2027, with the construction phase expected to provide more than 1,300 jobs. Rio Tinto has selected Bechtel, an international engineering firm other than BHP, as the project delivery partner, with contracting and supplier opportunities to be announced through designated platforms starting in early 2027.

The new mine will gradually replace output lost when the Andoom mine near Weipa ceases mining within this decade, while also filling the supply gap created by the planned closure of the Gove bauxite mine in the Northern Territory in 2029. The existing Weipa bauxite operations produce approximately 38 million tonnes per year, supplying alumina refineries in Australia and international customers.

Rio Tinto also reached an agreement in September 2026 to acquire the neighboring Aurukun bauxite project from Glencore and Mitsubishi Corporation, which currently hold 70% and 30% interests respectively, subject to government approval. Under Rio Tinto's plan, the Amrun, South Conway and Aurukun deposits will together form the long-term bauxite production system for the Weipa region.