Key Highlights

  • Rio Tinto announced a US$1.9 billion Investment to develop the Kangwinan bauxite project, adding 20 million tonnes a year of capacity at Weipa.
  • The company expects first output in 2029 and full production in 2032, with an estimated internal rate of return of about 22 per cent.
  • Rio Tinto's agreement to acquire the Aurukun Bauxite Project from Glencore and Mitsubishi remains subject to government approvals.

Rio Tinto (ASX:RIO) has announced a US$1.9 billion investment to develop the Kangwinan bauxite project on the western Cape York Peninsula in Queensland. The company describes it as a brownfield project that will add 20 million tonnes a year of bauxite capacity, lifting Weipa's capacity to about 44 million tonnes a year from about 38 million today. It expects first output in 2029 and full production in 2032.

The US$1.9 billion is the total Capital estimate and includes US$150 million of early works that were pre-approved in 2025. Rio Tinto said the spending is replacement Capital Expenditure and sits within its mid-term capital guidance. Construction ramps up in 2027 and is expected to employ more than 1,300 people. The company said permits are secured under the State- and Commonwealth-approved South of Embley environmental impact statement.

Rio Tinto estimates an internal rate of return of about 22 per cent, calculated on third-party market forecasts as at the fourth quarter of 2026. The company describes this as a projection that depends on the market assumptions used.

What will be built

Kangwinan is a new production centre 15 kilometres south-east of the Amrun mine, which is 40 kilometres south of Weipa town. A 15-kilometre conveyor will carry ore to expanded stockyards and the existing Amrun wharf, which will be enlarged to take larger capesize vessels. The company said it expects this to improve supply-chain efficiency and lower freight costs.

Replacing ageing mines

The company said Kangwinan will replace output from the Andoom mine, which is nearing the end of its life this decade, and will help offset the planned end of production at the Gove mine in the Northern Territory in 2029. Rio Tinto's residentially based Western Cape workforce is about 1,500 people, and the company said the project is intended to sustain it over the long term. Jérôme Pécresse, chief executive of Aluminium and Lithium, described the project as a vote of confidence in Weipa.

The project was named at the request of the Wik Waya Traditional Owners, and the name refers to a black female crow, a Wik Waya totem. Rio Tinto said it will work with Traditional Owners to limit impacts on cultural heritage, waterways and access routes.

Aurukun Acquisition still conditional

The announcement also refers to Rio Tinto's agreement to acquire the adjacent Aurukun Bauxite Project from Glencore, which holds 70 per cent, and Mitsubishi, which holds 30 per cent. The release says the agreement was reached last month, and it remains subject to government approvals. If the acquisition proceeds, Rio Tinto will assess the approvals pathway for the project with State and Commonwealth agencies. The company said Amrun, Kangwinan and Aurukun together are expected to support Weipa Operations well beyond the middle of this century. No purchase price is given in the announcement.

Wider aluminium footprint

Rio Tinto noted that its Australian aluminium operations employ more than 5,000 people directly across bauxite mines, alumina refineries and smelters, and that recent agreements support the Bell Bay, Tomago and Boyne smelters.

Separate director and executive share dealings

In a separate notice dated 22 October 2026, Rio Tinto (ASX:RIO) reported dealings by senior personnel in Rio Tinto plc shares on 19 October 2026 under employee plans. Peter Cunningham had 8.287489 matching shares vest, selling 3.480779 to cover tax and retaining 4.80671. Peter Cunningham, Katie Jackson and Jérôme Pécresse also acquired shares through the myShare plan at £67.16878 each, matched by free shares, and Ms Jackson made a further UK Share Plan purchase of six shares. The notice describes the activity as taking place under employee plans.

Next steps

The announcement lists the ramp-up of construction in 2027, first output in 2029, full production in 2032 and the government approvals needed for Aurukun. It does not detail construction risks or cost contingencies.