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Rio Tinto commits $1.9 billion to Kangwinan bauxite project in Queensland

Rio Tinto commits $1.9 billion to Kangwinan bauxite project in Queensland

Money Moves

New mine replaces aging Andoom operation, extends Weipa bauxite output beyond 2050

Today: Rio Tinto approves $1.9 billion Kangwinan investment

Overview

Updated 1 hour ago

Rio Tinto approved a $1.9 billion investment to build the Kangwinan bauxite mine on Queensland's Cape York Peninsula. The mine adds 20 million tonnes of annual capacity and lifts Weipa's total to about 44 million tonnes.

Kangwinan replaces the aging Andoom mine, which closes this decade, and cushions the planned 2029 shutdown of the Gove mine in the Northern Territory. First ore is targeted for 2029, with full production by 2032.

Why it matters

If Kangwinan slips, Rio Tinto's Australian alumina refineries lose a key ore source as Andoom and Gove shut down this decade.

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Key Indicators

$1.9B
Total investment
Includes $150 million for early works pre-approved in 2025.
20M tonnes
New annual bauxite capacity
Gross capacity added at Weipa, replacing Andoom's declining output.
44M tonnes
Weipa total annual capacity
Up from current production of about 38 million tonnes per year.
1,300
Construction jobs
Construction ramps up in 2027 with Bechtel as delivery partner.
22%
Expected internal rate of return
Based on third-party market forecasts as of Q4 2026.

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People Involved

Organizations Involved

Timeline

2025 2032

6 events Latest: Today
Tap a bar to jump to that date
  1. Full production expected

    Upcoming Milestone

    Weipa reaches about 44 million tonnes annual capacity.

  2. First ore targeted; Gove mine closure planned

    Upcoming Milestone

    Kangwinan first output targeted as Andoom ends and Gove shuts down.

  3. Construction ramps up

    Upcoming Construction

    Bechtel leads construction, supporting more than 1,300 jobs.

  4. Rio Tinto approves $1.9 billion Kangwinan investment

    Today Investment

    Final investment decision targets first ore in 2029 and full production by 2032.

  5. Rio Tinto agrees to acquire Aurukun Bauxite Project

    Acquisition

    Agreement to buy Aurukun from Glencore (70%) and Mitsubishi (30%), subject to government approvals.

  6. Early works begin at Kangwinan

    Construction

    Early works start with $150 million pre-approved by Rio Tinto.

Scenarios

1

Kangwinan delivers first ore in 2029

Likely Resolves by End of 2029

Discussed by: Rio Tinto guidance; Citi notes the capex is already in mid-term guidance

Rio Tinto targets first output in 2029 with construction ramping up in 2027. Environmental permits are secured through the South of Embley Environmental Impact Statement, and early works began in 2025. The project carries a 22% expected internal rate of return.

2

Aurukun acquisition completes, extending Weipa beyond mid-century

Likely Resolves by End of 2027

Discussed by: Rio Tinto

Rio Tinto agreed in September 2026 to acquire the adjacent Aurukun Bauxite Project from Glencore (70%) and Mitsubishi (30%), subject to government approvals. Combined Amrun, Kangwinan, and Aurukun operations would support Weipa beyond 2050.

3

Delays push Kangwinan first output past 2029

Possible Resolves by End of 2029

Discussed by: Australian Financial Review; mining analysts

Large mining projects often slip on schedule. If construction or approvals stall, first ore could move past 2029, tightening bauxite supply as Andoom and Gove close. The Australian Financial Review reported the project at about A$2.7 billion, reflecting currency conversion.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2013-2018

Amrun mine development (2013-2018)

Rio Tinto approved the Amrun mine, then called South of Embley, in 2013 as its previous Weipa expansion. The project cost about $1.9 billion and shipped first ore in late 2018, replacing the East Weipa mine.

Then

Amrun extended Weipa's life and became its main production center, with a wharf and processing facilities.

Now

Amrun set the pattern for Weipa expansions: a new mine replacing an aging one, using existing infrastructure.

Why this matters now

Kangwinan follows the same playbook, building 15 kilometers from Amrun and using its expanded wharf and stockyard.

2014-2029

Gove mine closure (planned 2029)

Rio Tinto's Gove bauxite mine in the Northern Territory has operated for decades, but its alumina refinery closed in 2014. Bauxite mining continued until Rio Tinto announced plans to end production in 2029.

Then

Gove's closure removes a source of bauxite supply for Rio Tinto's customers and refineries.

Now

Kangwinan is designed partly to compensate for Gove's loss, keeping supply flowing.

Why this matters now

The Kangwinan announcement explicitly cites Gove's 2029 closure as a reason for the investment.

Sources

(9)