Rio Tinto backs bauxite expansion with plans for larger Capesize vessels
Rio Tinto has announced a US$1.9 billion investment to develop the Kangwinan bauxite project in Queensland, Australia, including an expansion of the Amrun export wharf to accommodate larger Capesize bulk carriers.
The project, located on the Western Cape York Peninsula, will add 20 million tonnes of annual bauxite production capacity while supporting the long-term future of Rio Tinto’s Weipa operations. First production is targeted for 2029, with full production expected by 2032.
The development will increase Weipa Operations’ annual production capacity to approximately 44 million tonnes, compared with current production of around 38 million tonnes per year. However, the additional capacity will also replace output from existing mines approaching the end of their operational lives.
Amrun wharf expansion to support Capesize shipping
A central component of the Kangwinan development is the expansion of export infrastructure serving Rio Tinto’s bauxite operations.
The project will establish a new production centre approximately 15 kilometres southeast of the existing Amrun mine, located around 40 kilometres south of Weipa.
A new 15-kilometre conveyor system will transport bauxite from Kangwinan to expanded stockyard facilities and the existing Amrun wharf.
Rio Tinto plans to upgrade the wharf to accommodate larger Capesize vessels, a development intended to improve supply-chain efficiency and reduce freight costs.
The planned infrastructure improvements will support the movement of bauxite from the mining complex to international customers and Australian alumina refineries.
For the dry bulk shipping sector, the development represents a longer-term investment in Australia’s bauxite export infrastructure, although Rio Tinto has not provided forecasts for additional vessel calls or future shipping volumes.
Replacing ageing production capacity
Kangwinan will replace production from the Andoom mine near Weipa, which is expected to reach the end of its operating life during the current decade.
The project will also help compensate for the planned closure of Rio Tinto’s Gove bauxite mine in the Northern Territory in 2029.
According to the company, construction activity will increase during 2027, with the project expected to support more than 1,300 construction jobs.
Rio Tinto Aluminium & Lithium Chief Executive Jérôme Pécresse described the investment as a demonstration of the company’s long-term commitment to its Australian bauxite operations.
“Kangwinan is a strong vote of confidence in Weipa,” said Pécresse.
He also highlighted the importance of maintaining relationships with Traditional Owners and local communities as the development progresses.
Further development planned in Western Cape York
The Kangwinan investment forms part of Rio Tinto’s broader strategy to maintain bauxite production and export capacity in Western Cape York.
The company has separately agreed to acquire the adjacent Aurukun Bauxite Project from Glencore, which holds a 70% interest, and Mitsubishi, which owns the remaining 30%.
That acquisition remains subject to government approvals and has not yet been completed.
Rio Tinto expects the combined Amrun, Kangwinan and potentially Aurukun operations to support its Weipa business well beyond the middle of the century.
The Kangwinan investment includes US$150 million in early works previously approved in 2025. The company’s planned expansion of the Amrun wharf and associated infrastructure will form an important part of the project’s future bauxite export logistics.
