Rio Tinto plc (RIO) has announced a $1.9 billion investment to develop the Kangwinan bauxite project on Western Cape York Peninsula in Queensland, Australia, with first output targeted for 2029 and full production expected by 2032. The brownfield project will add 20 million tonnes of annual bauxite production capacity at Weipa, lifting total Weipa Operations capacity to approximately 44 million tonnes per year from around 38 million tonnes currently. The investment is expected to deliver an internal rate of return of approximately 22%, based on third-party market forecasts as at Q4 2026, and is incorporated within Rio Tinto's existing mid-term capital guidance.

Key Points

  • Rio Tinto plc (RIO) — dual-listed London and ASX mining major
  • $1.9 billion committed to develop Kangwinan bauxite project in Western Cape York, Queensland
  • First output targeted 2029; full production by 2032; approximately 22% IRR expected; construction ramp-up from 2027 supporting more than 1,300 jobs
  • Investors should watch government approvals for the separate Aurukun Bauxite Project acquisition from Glencore and Mitsubishi, which would further extend Weipa's operational horizon

Kangwinan to Replace Andoom Mine Output and Offset Planned Gove Closure in 2029

The Kangwinan project serves a dual strategic purpose within Rio Tinto's integrated aluminium value chain. It will replace production from the Andoom mine near Weipa as that operation reaches the end of its life this decade, whilst simultaneously helping to compensate for the planned cessation of production at the Gove mine in the Northern Territory in 2029. The announcement states that Weipa Operations' annual capacity will rise to approximately 44 million tonnes, supporting continued supply to Rio Tinto's international customers and its Australian alumina refineries. Early works commenced in 2025, with $150 million of that total already pre-approved at that stage.

New Production Centre 15 Kilometres South-East of Amrun, With Expanded Capesize Wharf Facilities

Kangwinan will establish a new bauxite production centre located 15 kilometres south-east of Rio Tinto's existing Amrun mine, which itself sits 40 kilometres south of Weipa. A 15-kilometre conveyor will transport ore to expanded stockyard facilities and the existing Amrun wharf. The announcement states that the wharf will be expanded to accommodate larger capesize vessels, with Rio Tinto citing improved supply-chain efficiency and reduced freight costs as direct operational benefits. Construction is scheduled to ramp up in 2027 and is expected to support more than 1,300 construction jobs, with longer-term operations sustaining a residentially based workforce of around 1,500 people in the Western Cape.

Aurukun Acquisition From Glencore and Mitsubishi Would Extend Weipa's Life Beyond Mid-Century

Alongside the Kangwinan commitment, Rio Tinto last month agreed to acquire the adjacent Aurukun Bauxite Project, subject to government approvals, from Glencore (70%) and Mitsubishi (30%). The announcement states that the combined Amrun, Kangwinan, and Aurukun operations are expected to support Weipa Operations well beyond the middle of this century. Should the Aurukun acquisition proceed, Rio Tinto has indicated it would assess the appropriate environmental approvals pathway in consultation with State and Commonwealth agencies, and work with Traditional Owners throughout subsequent planning stages. Investors may monitor regulatory timelines closely given this dependency.

Wik Waya Traditional Owners Central to Project Naming and Ongoing Community Commitments

The project was named Kangwinan at the request of the Wik Waya Traditional Owners; the name refers to a protector of sacred protocols and is also the name of the black female crow, a totem of the Wik Waya people. Environmental permits were previously secured through the State and Commonwealth-approved South of Embley Environmental Impact Statement. Rio Tinto has operated in Western Cape York for more than 60 years, and the announcement emphasises continuing to minimise impacts on cultural heritage, waterways, and access routes as a condition of the project's long-term social licence to operate.