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

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.