Rio Tinto to Build New Bauxite Port in Australia
Mining giant Rio Tinto will expand output from one of the world’s premier bauxite deposits following approval of the $1.9 billion Amrun project.
Amrun involves the construction of a bauxite mine and associated processing and port facilities on the Cape York Peninsula in north Queensland, Australia.
The planned initial output is 22.8 million tons a year, replacing production from the depleting East Weipa mine and increasing annual bauxite exports from Cape York by around 10 million tons.
Production and shipping are expected to commence in the first half of 2019, ramping up to full production by the end of the year. The project’s design provides options for future expansion to 50 million tons a year.
“Amrun is one of the highest quality bauxite projects in the world, says Rio Tinto chief executive Sam Walsh. “This long-life, low-cost, expandable asset offers a wide variety of development options and pathways over the coming decades. We are establishing Cape York bauxite as the product of choice for the Chinese seaborne market with consistent quality, security of supply and strong technical marketing support. Amrun will be significant in helping to meet growing bauxite demand from China.”
The Amrun project is about 40 kilometers south of Rio Tinto’s existing East Weipa and Andoom mines on the Cape York Peninsula in far north Queensland.
Rio Tinto holds 1.49 billion tons of bauxite reserves and 1.91 billion tons of resources in the Cape York region.