Rio Tinto approves US$1.9 billion Kangwinan bauxite project in Queensland

Rio Tinto said on 23 October that it would invest an estimated US$1.9 billion to develop Kangwinan, a new bauxite production centre near its Weipa operations on western Cape York. The company described the decision as a brownfield expansion that uses some existing infrastructure.

The project is designed to add 20 million tonnes a year of production capacity. Rio expects Weipa’s annual capacity to rise to about 44 million tonnes from about 38 million tonnes. These are planned capacity figures; they do not represent current output or guaranteed sales.

Kangwinan is intended to replace production from the Andoom mine as that operation approaches the end of its life this decade. Rio also said the project would help offset the planned end of production at Gove in the Northern Territory in 2029, while supplying its alumina refineries and international customers.

The development plan includes a 15-kilometre conveyor to expanded stockyard facilities and the existing Amrun wharf. Rio plans to expand the wharf for larger Capesize vessels, which it says could improve supply-chain efficiency and lower freight costs. The release did not quantify those potential savings.

Construction is expected to ramp up in 2027, with more than 1,300 construction jobs anticipated. Rio said the long-term project would help sustain a residential workforce of around 1,500 people in Western Cape York. These are company estimates about future work and workforce support.

The US$1.9 billion estimate includes US$150 million of early works approved in 2025. Rio reported an expected internal rate of return of about 22%, based on third-party market forecasts as of the fourth quarter of 2026. The company said the project was named at the request of Wik Waya Traditional Owners and that it would continue work to protect cultural heritage, waterways and access routes.

The project’s schedule distinguishes first output from the point at which production is expected to reach full scale. Rio targeted initial production in 2029 and full production by 2032, meaning the planned capacity addition will build over time rather than appear in one year. The company’s forecast that Weipa capacity could move from roughly 38 million to 44 million tonnes a year is a site-level figure; it is not the same as the 20-million-tonne design capacity of Kangwinan itself.

Rio said environmental permits had already been secured under the South of Embley environmental impact assessment, while the new announcement covers the investment decision and intended development. The 15-kilometre conveyor, stockyard expansion and wharf work are linked infrastructure elements in that plan. Capital cost, employment and throughput figures are company estimates; delivery will depend on construction and operating execution, and the release does not make the projected schedule a guarantee.