Rio Tinto Pledges US$1.9B for Queensland’s Kangwinan Bauxite Mine

Rio Tinto (RIO ) said on 23 October 2026 that it will invest US$1.9 billion to develop the Kangwinan bauxite project on Western Cape York Peninsula in Queensland, a brownfield project that will add 20 million tonnes of annual bauxite production capacity at the company’s Weipa Operations. In its announcement, the company said the investment underpins the long-term future of Weipa and continued supply to its international customers and its Australian alumina refineries.

The project targets first output in 2029, with full production expected by 2032. A footnote to the announcement states that Kangwinan’s total capital estimate of $1.9 billion is inclusive of $150 million for early works pre-approved in 2025, and that this replacement capital expenditure is incorporated within Rio Tinto’s mid-term capital guidance. The company said the investment is expected to deliver an internal rate of return of approximately 22%, based on third-party market forecasts as at Q4 2026. All currency figures in the announcement are in US dollars.

Kangwinan will replace production from the Andoom mine near Weipa as it reaches the end of its life this decade. The project will increase Weipa Operations’ annual capacity to about 44 million tonnes, from current production of around 38 million tonnes per year, and will help compensate for the planned end of production at the Gove mine in the Northern Territory in 2029.

Rio Tinto said the brownfield investment leverages its project execution capability and reflects continued application of the company’s disciplined capital allocation framework. The company said Kangwinan highlights its continued commitment to mining in Australia and will sustain its position as one of the world’s leading high-quality bauxite producers.

Construction and Workforce

Early works at Kangwinan began in 2025. The project will establish a new bauxite production centre 15 kilometres south-east of Rio Tinto’s Amrun mine, which is located 40 kilometres south of the town of Weipa. A 15-kilometre conveyor will transport ore from Kangwinan to expanded stockyard facilities and the existing Amrun wharf. The wharf will be expanded to accommodate larger capesize vessels, which the company said will improve supply-chain efficiency and reduce freight costs.

Construction will ramp up in 2027 and is expected to support more than 1,300 construction jobs. Longer term, the project will help sustain Rio Tinto’s residentially based workforce of around 1,500 people in the Western Cape.

Rio Tinto Aluminium & Lithium Chief Executive Jérôme Pécresse called Kangwinan “a strong vote of confidence in Weipa, in the quality of its bauxite, the capability of its workforce, and the future of the communities and businesses closely connected to our operations.” He described the project as “the most significant new mining investment in Queensland in recent years” and a sign of Rio Tinto’s long-term commitment to its bauxite business, the State and the company’s integrated mine-to-metal aluminium value chain. Pécresse said Rio Tinto has operated in Western Cape York for more than 60 years and that the investment will support jobs, create opportunities for local and regional businesses and help the company continue supplying customers with the high-quality bauxite they have relied on for decades.

Aurukun Agreement and Approvals

Rio Tinto said that last month it agreed to acquire, subject to government approvals, the adjacent Aurukun Bauxite Project from current owners Glencore (70%) and Mitsubishi (30%) to support its long-term growth plans in Western Cape York, using existing and planned infrastructure. The company said the combined Amrun, Kangwinan and Aurukun operations are expected to support Weipa Operations well beyond the middle of this century. If the Aurukun acquisition proceeds, Rio Tinto would assess the appropriate environmental approvals pathway for its future development, in consultation with State and Commonwealth agencies, and would work closely with Traditional Owners throughout the next stages of planning and development.

The project was named Kangwinan at the request of the Wik Waya Traditional Owners. According to the announcement, Kangwinan is a protector of all sacred, ceremonial and female protocols of the Wik Waya tribe and is also the name of the black female crow, a totem of the Wik Waya people. Rio Tinto said it will continue to work with Traditional Owners to minimise impacts on cultural heritage, waterways and important access routes.

Environmental permits for the Kangwinan project were previously secured through the State and Commonwealth-approved South of Embley Environmental Impact Statement.

Rio Tinto’s Australian aluminium operations span bauxite mines, alumina refineries and aluminium smelters and directly employ more than 5,000 people, according to the company, which said the operations support thousands more jobs across the country. It said Kangwinan, alongside recent agreements to support the future of the Bell Bay, Tomago and Boyne smelters, demonstrates how Rio Tinto is investing across its integrated aluminium value chain to support Australian production and jobs.

The announcement was authorised for release to the market by Matthew Whyte, Rio Tinto’s Group Company Secretary.