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Highlights

 

  • Rio Tinto has approved a USD 180 million investment to develop the Norman Creek access project, aimed at sustaining long-term operations at its Amrun bauxite site in Queensland.

  • The Norman Creek area holds nearly half of Amrun’s declared 978 million tonnes of Ore Reserves, with first production expected in 2027 and full construction by 2028.

  • In parallel, Rio Tinto is advancing the Kangwinan project, which could add up to 20 million tonnes of annual capacity to replace declining output from other sites.

 

Rio Tinto (ASX:RIO) has approved a USD180 million investment to develop the Norman Creek access project, boosting the long-term future of its Amrun bauxite operations on Queensland’s Cape York Peninsula. The decision paves the way for the next stage of mining at the world-class site and underlines the company’s commitment to sustaining operations in the region for decades to come.

The Norman Creek region contains nearly half of Amrun’s currently declared Ore Reserves, which total 978 million tonnes, and the new development will provide vital infrastructure to access and extract this high-grade resource.

Infrastructure Development Underway

Construction has already begun on key project infrastructure, including a 19-kilometre haul road, camp accommodation facilities, and a communications tower. First production from Norman Creek is targeted for 2027, with full-scale construction expected to be completed in 2028.

Armando Torres, Managing Director of Pacific Operations Aluminium at Rio Tinto, commented on the project's significance and highlighted that the project would sustain regional employment well into the middle of the century, offering stability for both Rio Tinto’s workforce and the local Weipa community.

Confidence in Cape York’s World-Class Resources

Rio Tinto’s decision to proceed with Norman Creek follows notable operational improvements at Amrun, bolstering confidence in the site’s long-term potential. Torres highlighted that this investment reflects both the quality of Western Cape York’s bauxite deposits and the strength of the company’s operations team at Amrun.

The Norman Creek development will be treated as replacement capital and is already included in Rio Tinto’s broader capital expenditure forecasts.

Kangwinan Project Advancing in Parallel

In a related move, Rio Tinto is also progressing with the Kangwinan project, aimed at expanding Amrun’s production capacity. The company has commenced early works and a final feasibility study for the project, which is intended to add up to 20 million tonnes per year to the current 23 million tonnes produced by its Weipa Southern operations.

If approved, Kangwinan would also increase export capacity through the Amrun port, replacing declining output from the Andoom mine (Cape York) and Gove mine (Northern Territory), both of which are expected to close by decade’s end. First production from Kangwinan could occur as early as 2029.

The project name, Kangwinan, was chosen in consultation with Traditional Owners, the Wik Waya people.