Rio Tinto, the mining giant, is to invest $1.9 billion to develop the Kangwinan bauxite project on the Western Cape York Peninsula in Queensland, Australia.
The brownfield development will add 20 million tonnes of annual bauxite production capacity at its Weipa Operations, with first output targeted in 2029 and full production expected by 2032.
Kangwinan will replace production from the Andoom mine near Weipa as it reaches the end of its life this decade, while lifting Weipa Operations' annual capacity to around 44 million tonnes.
That compares with current output of approximately 38 million tonnes per year.
The project will also help compensate for the planned closure of the Gove mine in the Northern Territory in 2029.
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.
Jérôme Pécresse, chief executive of Rio Tinto Aluminium and Lithium, called it the most significant new mining investment in Queensland in recent years.
The investment is expected to deliver an internal rate of return of approximately 22%, based on third-party market forecasts.
Kangwinan, named at the request of the Wik Waya Traditional Owners, will be sited 15 kilometres south-east of Rio Tinto's Amrun mine.
A 15-kilometre conveyor will transport ore to expanded stockyard facilities and the existing Amrun wharf, which will be enlarged to accommodate larger capesize vessels.
Last month Rio Tinto agreed to acquire the adjacent Aurukun Bauxite Project from Glencore, the FTSE 100 mining company, and Mitsubishi, subject to government approvals.
