Showing posts sorted by relevance for query Amrun. Sort by date Show all posts
Showing posts sorted by relevance for query Amrun. Sort by date Show all posts

Rio Tinto Expands Amrun Bauxite Capacity with Kangwinan Project

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Rio Tinto Expands Amrun Bauxite Capacity with Kangwinan Project
Kangwinan

Amrun Mine Expansion Aims to Offset Upcoming Closures

Rio Tinto plans to boost its Australian bauxite output by developing the Kangwinan project alongside its Amrun bauxite mine. The expansion will support long-term supply as the Gove and Andoom mines are scheduled to shut around 2030. Rio Tinto confirmed the final investment decision for Kangwinan is expected in 2026, with production starting in 2029.

Kangwinan will add up to 20mn t/yr, complementing the 23mn t/yr already produced at Amrun in northern Queensland. Earlier this year, Rio Tinto ran Amrun above capacity, achieving 15mn t in Q1 2025. The expansion includes port upgrades and will help replace output lost from the 13mn t/yr Gove and Andoom mines.

ESG Compliance and Renewable Energy Integration

Rio Tinto is under growing pressure to meet Australia's reformed safeguard mechanism compliance targets. Weipa operations emitted 270,463t CO₂e in 2023–24, surpassing the baseline and prompting surrender of 14,025 carbon credits. To cut emissions, Rio Tinto launched a solar and battery project at Amrun, aiming to reduce diesel electricity by 37%.

The renewable system is projected to lower Amrun’s carbon output by 14,000t CO₂e annually. This aligns with Rio Tinto's broader ESG and decarbonization commitments across its global mining operations.

The Metalnomist Commentary

Rio Tinto’s expansion at Amrun reinforces Australia's role in global bauxite supply amid tightening ESG mandates. The Kangwinan project reflects a strategic pivot toward cleaner, long-term operations as legacy mines near closure. Bauxite's role in decarbonized aluminum production is becoming increasingly vital in global energy transition strategies.

Rio Tinto bauxite expansion in Queensland secures long-term supply

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Rio Tinto bauxite expansion in Queensland secures long-term supply
Rio Tinto, Australia

Rio Tinto bauxite expansion in Queensland will extend Weipa’s life and bolster global alumina supply. The miner approved a $180mn Norman Creek access project that unlocks near-mine reserves and supports Amrun’s 22.8mn t/yr operation. As a result, the Rio Tinto bauxite expansion in Queensland strengthens security for smelters and refiners.

Norman Creek opens a new mining area from 2027

Rio Tinto will build a 19km haul road, camp accommodation, and a communications tower. The Norman Creek area holds about half of Amrun’s 978mn t of declared ore reserves. Production will start in 2027, with full construction finishing in 2028. Therefore, Amrun can sustain output at or above nameplate rates for years.

Kangwinan project aims to replace closing capacity

The company will decide on the 20mn t/yr Kangwinan mine in 2025. If approved, Kangwinan would start producing in 2029. It would replace volumes from the 13mn t/yr Gove mine and Andoom, which are nearing closure. Meanwhile, Amrun delivered above-nameplate output in April–June, supporting near-term shipments.

The Rio Tinto bauxite expansion in Queensland improves supply chain resilience. It supports alumina refineries in Asia and the Middle East. It also aligns with OEM demand for low-risk raw materials. Furthermore, concentrated logistics near Weipa reduce unit costs and carbon intensity per tonne hauled.

Miners and buyers should watch contract tenors and index linkages. New supply can pressure delivered premiums, especially into China. However, replacement of legacy mines will limit net global surplus. Therefore, long-term contracts may still price in freight and quality advantages.

The Metalnomist Commentary

Rio Tinto bauxite expansion in Queensland signals disciplined, replacement-led growth. Norman Creek and Kangwinan shift the portfolio toward lower-risk, infrastructure-adjacent ore. Expect stronger negotiating leverage on multi-year offtakes as Gove and Andoom wind down.

Rio Tinto Boosts Global Copper and Aluminium Output in Early 2025

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Rio Tinto Boosts Global Copper and Aluminium Output in Early 2025
Rio Tinto Mining

Amrun Bauxite and Alumina Operations Drive Growth

Rio Tinto increased its global copper and aluminium output in the first quarter of 2025. The UK-Australian producer reported 15mn tonnes of bauxite and 1.9mn tonnes of alumina production from January to March, up 12pc and 3pc year-on-year respectively.

Meanwhile, its Amrun bauxite mine in Queensland exceeded nameplate capacity. Alumina output also rebounded from prior gas supply disruptions. Despite global supply headwinds, Rio Tinto maintained its full-year guidance for all major commodities including 3.25mn–3.45mn tonnes of aluminium and up to 850,000 tonnes of copper.

Aluminium Output Stable Amid Energy Constraints

Rio Tinto’s aluminium production remained flat year-on-year. Its Tiwai Point smelter in New Zealand operated at reduced capacity due to a request from Meridian Energy. However, a production ramp-up is scheduled for late August.

At the same time, the Kitimat smelter in Canada faced energy supply issues that limited further growth. While the US announced new tariffs on aluminium and steel in March, Rio Tinto confirmed minimal short-term shipment impact. Yet, long-term consequences remain uncertain for its Australian smelters.

Copper Output Rises Despite Refining Cuts

Copper output rose across Rio Tinto’s operations in Utah, Chile, and Mongolia. However, refining volumes declined by 10pc owing to depleted stockpiles and technical issues at Utah’s Kennecott site.

As a result, Rio Tinto is expanding the Kennecott mine with a new underground section. The North Rim Skarn, initially scheduled for 2024, will now start operations in the second half of 2025 and is expected to boost copper capacity by 250,000 t/yr.






 

The Metalnomist Commentary

Rio Tinto’s Q1 output results suggest strong upstream resilience, especially in bauxite. However, energy access and refining disruptions remain critical variables. The success of Kennecott’s expansion will be key to meeting 2025 copper targets.

Rio Tinto 2026 production guidance signals steady aluminium and higher alumina

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Rio Tinto 2026 production guidance signals steady aluminium and higher alumina
Rio Tinto

Rio Tinto 2026 production guidance sets 2026 targets for bauxite, alumina, and aluminium. Rio Tinto 2026 production guidance keeps aluminium steady while it lifts alumina output. The company targets 58–61mn t of bauxite, 7.6–8mn t of alumina, and 3.25–3.45mn t of aluminium. However, tailings limits and power contracts shape the real supply outlook.

Bauxite and alumina tighten around operational constraints

Bauxite volumes will dip slightly as Rio Tinto eases Weipa output after a strong 2025. The company ran the Amrun mine above capacity for most of 2025. As a result, the complex lifted production by 8pc in January–September. Meanwhile, Rio Tinto plans a 2027 expansion at Norman Creek.

Alumina guidance rises, but Rio Tinto will curb output at Yarwun refinery in late 2026. The company expects 7.6–8mn t of alumina in 2026. However, it will cut the 3mn t/yr refinery by 1.2mn t/yr from October 2026. The site supplied about 39pc of Rio Tinto’s alumina in July–September.

Aluminium stays steady as capex and power risks grow

Aluminium output stays flat, yet the company invests heavily in low-carbon capacity. Rio Tinto plans 3.25–3.45mn t of aluminium in 2026. Meanwhile, it will expand the AP60 smelter in Canada to 220,000 t/yr. The $1.1bn project will add 96 pots in early 2026.

Australian power risk now threatens stable smelting volumes. Rio Tinto must secure a new power deal with Hydro Tasmania for Bell Bay smelter by end-2026. However, high energy costs could also force a 2028 closure decision at Tomago smelter in New South Wales. Meanwhile, Rio Tinto pursues growth through an India low-carbon smelter plan with AMG Metal and Mining. Therefore, Rio Tinto 2026 production guidance will face execution risk beyond the headline ranges.

The Metalnomist Commentary

Rio Tinto’s stable aluminium guidance hides rising constraints across refining and smelting. However, the AP60 expansion signals confidence in premium, low-carbon metal demand. Therefore, investors should watch tailings solutions and power negotiations more than volume targets.

Rio Tinto Increases Aluminium and Copper Production in 2024, Sets Higher Targets for 2025

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Rio Tinto

Strong Growth in Bauxite and Aluminium Output

Rio Tinto, a leading UK-Australian mining firm, reported increased bauxite and aluminium production in 2024, surpassing expectations. The company extracted 58.7 million tonnes of bauxite, exceeding its guidance range of 53-56 million tonnes. Despite a 3% decline in alumina production, Rio Tinto achieved 7.3 million tonnes, reaching the upper limit of its revised 7-7.3 million tonne guidance.

The Amrun bauxite mine in Queensland, with a 10 million tonne per year capacity, operated above its expected levels. Meanwhile, aluminium production rose by 1% to 3.3 million tonnes, supported by the Kitimat plant in Canada, which reached full capacity in late 2023, and Rio Tinto’s ownership of the New Zealand Aluminium Smelter.

Copper and Alumina Expansion Plans for 2025

Rio Tinto revised its 2025 production targets, slightly increasing projections for bauxite, alumina, and aluminium. The company expects:
  • 57-59 million tonnes of bauxite
  • 7.4-7.8 million tonnes of alumina
  • 3.25-3.45 million tonnes of aluminium
The New Zealand Aluminium Smelter will continue ramping up in early 2025, while Rio Tinto aims to complete the AP60 low-carbon aluminium smelter expansion in Quebec, Canada, by 2026. This project will increase aluminium output by 160,000 tonnes per year to 220,000 tonnes per year.

Copper Production Strategy and Expansion Projects

Rio Tinto modified its copper reporting metrics, consolidating mined and refined copper output into a single figure. The company targets 780,000-850,000 tonnes of copper production in 2025, up from 792,000 tonnes in 2024.


Growth will primarily come from:
  • The Oyu Tolgoi mine in Mongolia, which ramped up to 168,100 tonnes per year in 2024.
  • The North Rim Skarn copper project near Salt Lake City, US, set to launch in mid-2025 with an expected output of 250,000 tonnes per year.
With rising global demand for low-carbon aluminium and copper, Rio Tinto’s production increases could significantly impact global supply chains and metal prices.









Rio Tinto’s 3Q Copper and Aluminium Production Declines, Bauxite Output Rises

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Rio Tinto’s

Rio Tinto, the UK-Australian mining giant, posted moderate declines in mined copper and primary aluminium production in the third quarter of 2024. However, the company saw overall output growth during the first nine months of the year.

Copper Production Declines Amid Challenges at Key Mines

In the third quarter, Rio Tinto’s mined copper production dropped by 1% year-on-year, reaching 167,800 tonnes. This decline was largely due to a significant 44% decrease at the Kennecott mine in the United States, where geological issues, including ground movement, restricted access to high-grade ore, forcing the use of lower-grade material. However, the company’s Escondida mine in Chile showed a 15% increase in output, driven by higher ore grades, and Oyu Tolgoi in Mongolia experienced a 19% production boost due to increased operational efficiency.

For the first nine months of 2024, Rio Tinto's mined copper production increased by 8% year-on-year, totalling 494,700 tonnes. Meanwhile, refined copper production surged by 59% in Q3, reaching 54,300 tonnes, thanks to a 129% increase at Kennecott following its smelter and refinery rebuild in the previous quarter. This was partially offset by a 24% drop in Escondida’s refined copper output due to lower ore grades. Overall, Rio Tinto’s refined copper production for January-September was up by 39% to 179,600 tonnes.

Aluminium Production Experiences Setbacks

Rio Tinto's primary aluminium production in Q3 fell by 2% year-on-year to 809,000 tonnes. This also represented a 2% drop from the previous quarter. However, aluminium production for the first nine months of 2024 was up by 1%, totalling 2.46 million tonnes. The decline in Q3 was linked to operational issues at the New Zealand Aluminium Smelters subsidiary, where Meridian Energy halted plans for a 600 MW renewable hydrogen and ammonia project due to economic and logistical challenges. As a result, the company expects to ramp up the smelter at Tiwai Peninsula in New Zealand by the second quarter of 2025.

Rio Tinto is also focusing on sustainability. In August 2024, Rio Tinto entered a partnership with the Queensland state government in Australia to ensure the long-term future of its Boyne smelter by transitioning to renewable energy sources.

Bauxite Production Shows Growth

Bauxite production, another key commodity for Rio Tinto, increased by 8% year-on-year in Q3 to 15.1 million tonnes. This growth was driven by higher utilisation rates at Rio Tinto’s Amrun mine in Weipa, Australia, following the implementation of the company’s Safe Production System in 2021. The system uses data-driven insights to optimize maintenance scheduling and prevent bottlenecking. Total bauxite production for the first nine months of 2024 rose by 9% year-on-year, totalling 43.2 million tonnes.

Outlook for 2024

Looking ahead, Rio Tinto expects to produce between 660,000 and 720,000 tonnes of mined copper and 230,000 to 260,000 tonnes of refined copper for the remainder of 2024, indicating a steady production forecast for the rest of the year despite the challenges faced in Q3.