Rio Tinto mining operations at Weipa. Photos: Supplied.
Rio Tinto has agreed to snap up the Aurukun Bauxite Project near the remote Indigenous community on Cape York Peninsula from Glencore and Mitsubishi.
Development of the proposed open-cut mine would see up to 15 million tonnes of bauxite extracted each year for 25 years.
Bauxite is used to produce aluminium for construction, transport, packaging, electrical and other purposes.
A Rio Tinto spokesperson confirmed the agreement, but financial terms were not disclosed.
“Rio Tinto can confirm it has agreed to acquire the Aurukun Bauxite Project in Western Cape York from Aurukun project joint venture partners Glencore and Mitsubishi,” they said.
“The project is currently held under a mineral development license with a mining lease yet to be granted.
“The acquisition is for an undisclosed price and remains subject to relevant Queensland Government and other Australian regulatory approvals.
“If the acquisition proceeds, Rio Tinto would also assess the appropriate regulatory approvals pathway, in consultation with state and Commonwealth agencies, and work closely with traditional owners throughout the next stages of planning and development.”
A Glencore spokesperson said: “Glencore, along with our joint venture partner Mitsubishi has entered into an agreement with Rio Tinto regarding the proposed transfer of ownership of the Aurukun Bauxite Project.
“The agreement is subject to approval from the Queensland Government, as well as other regulatory approvals and completion conditions.
“The joint venture invested significant resources over many years to progress design, development and approval for the project.
“Following recent progress on regulatory approvals by the Queensland and Commonwealth governments, together with updated designs and cost estimate, the joint venture proactively considered a wide range of options that could support investment in, and development of, the Aurukun bauxite resource.
“After assessing these options, the joint venture believes the introduction of Rio Tinto, as owner of the project, provides the best opportunity for the future development of the resource given their existing bauxite operations in the region.
Rio Tinto is expanding its Cape York mining portfolio. Photo: Rio Tinto.
“Any future development remains subject to regulatory approvals and any relevant stakeholder consultations, approvals or agreements.
“We would also like to take this opportunity to express our thanks to the traditional owner and local community members for their long-running and constructive engagement with the joint venture across the years.
“We remain committed to openly and transparently discussing this proposed change with our local stakeholders.”
The greenfields Aurukun Bauxite Project is due to take shape about 23 kilometres north-east of the town of Aurukun and 35 kilometres south of Weipa.
Currently, Rio operates the Amrun, Andoom and East Weipa mines on the Cape, though production at East Weipa ceased in 2024.
Rio has also been working on the Kangwinan project to significantly boost bauxite production from its Weipa Southern operations at Amrun.
Original Article published by Luke Mortimer on Region Tropical North Queensland.
