Rio Tinto has approved a US$1.9 billion investment to develop the Kangwinan bauxite project on Western Cape York Peninsula in Queensland, Australia. The billion-dollar investment will increase production capacity at Rio Tinto’s Weipa operations. It will also help secure long-term supplies of bauxite to its alumina refineries and international customers.
Announced on October 23, 2026, the investment will establish a new bauxite production center 15 kilometers southeast of the company’s existing Amrun mine. The project will add 20 million tons of annual bauxite production capacity. This will increase the Weipa operations’ annual capacity to 44 million tons from current production of around 38 million tons.
Rio Tinto is targeting first production from the Kangwinan bauxite project in 2029, with full production expected by 2032. The development also forms part of the mining group’s strategy to sustain its Australian bauxite business. This comes as older mining operations approach the end of their productive lives.
Kangwinan project to replace ageing bauxite mining operations
The Kangwinan bauxite project development is designed to replace production from the Andoom mine near Weipa as the operation approaches the end of its life this decade. It will also help offset the planned cessation of production at Rio Tinto’s Gove bauxite mine in the Northern Territory in 2029.
Additionally, the investment will help maintain the company’s supply of bauxite. Bauxite is a primary raw material used to produce alumina and subsequently aluminum. These materials serve industries including construction, transportation, packaging and renewable energy infrastructure.
The project also represents a brownfield investment. This means it will build on existing mining and export infrastructure rather than establish an entirely independent mining and shipping system.
Furthermore, the company estimates that the investment will deliver an internal rate of return of approximately 22%. This is based on third-party market forecasts as of the fourth quarter of 2026. The US$1.9 billion capital estimate also includes US$150 million previously approved for early works in 2025.
Kangwinan bauxite project scope includes a 15-kilometer conveyor and expanded export wharf
The Kangwinan project will establish a new mining and production center in the Norman Creek area of Western Cape York. This is 40 kilometer south of the town of Weipa.
Another major component of the development will be a 15-kilometre conveyor system. The conveyor will link the new production center to expanded stockyard facilities and the existing Amrun export wharf. The infrastructure is also intended to facilitate the efficient movement of mined bauxite from the new operation to the port for shipment.
Rio Tinto will also expand the Amrun wharf to accommodate larger Capesize vessels. The upgrade is expected to improve export logistics, increase shipping efficiency and reduce freight costs.
Additionally, the wider development involves integrating new mining and processing infrastructure with the existing Amrun operation. This includes associated stockpiling, material-handling and supporting facilities.
The approach will also allow Kangwinan bauxite project to benefit from the infrastructure already serving Rio Tinto’s southern Weipa operations. This is while increasing the complex’s capacity to supply both domestic processing facilities and international customers.
Construction to ramp up in 2027, creating more than 1,300 jobs
Following the commencement of early works in 2025, construction activity at the Kangwinan bauxite project is expected to ramp up in 2027. Rio Tinto anticipates that the project will support more than 1,300 construction jobs. The project is also expected to create employment opportunities across trades, engineering, logistics, construction and other support services.
The development is also expected to sustain Rio Tinto’s workforce of approximately 1,500 people based in Western Cape York over the longer term. Local and regional businesses are expected to have opportunities to participate in project delivery through the supply of materials, equipment, services and construction support.
Bechtel Australia as EPC Contractor
Rio Tinto appointed Bechtel Australia as the project’s engineering, procurement and construction management (EPCM) partner. The company says construction opportunities will be advertised through Bechtel’s employment portal, with details expected to become available from early 2027.
Supplier opportunities are also being communicated through the Industry Capability Network (ICN) Gateway. ICM connects project owners with potential Australian suppliers and contractors. Rio Tinto has also encouraged interested businesses to register their capabilities and monitor the project listings for relevant procurement packages.
Traditional Owner engagement and environmental considerations
Kangwinan bauxite project is being developed on the traditional lands of the Wik and Wik Waya, Alngith, Peppan and Wathayn peoples. The project name was requested by the Wik Waya Traditional Owners. It carries cultural significance associated with the protection of sacred, ceremonial and female protocols.
Rio Tinto also says it will continue working with Traditional Owners to manage cultural heritage. The mining company also aims to minimize impacts on waterways and important access routes throughout construction and operations.
The company has also stated that the proposed development does not affect protected areas. According to the company, management plans have also been developed to protect matters of conservation significance.
Environmental approvals for the Kangwinan bauxite project were previously secured through the state and Commonwealth-approved South of Embley Environmental Impact Statement (EIS). This provides an established approvals framework for the development, although relevant project requirements and compliance obligations will continue to apply as construction progresses.
Kangwinan to strengthen Rio Tinto’s long-term Weipa operations
The investment comes as Rio Tinto pursues additional opportunities to extend its bauxite production base in Western Cape York. In September 2026, the company agreed to acquire the adjacent Aurukun Bauxite Project from Glencore and Mitsubishi, subject to government approvals.
The proposed acquisition involves assets currently held by Glencore, with a 70% interest, and Mitsubishi, with a 30% interest. If completed, the transaction would complement the company’s existing Amrun and planned Kangwinan operations. It will also potentially enable greater use of existing and planned infrastructure across the region.
Rio Tinto expects the combined Amrun, Kangwinan and Aurukun operations to support its Weipa bauxite business well beyond the middle of this century. However, the Aurukun development remains subject to the acquisition proceeding and the company determining the appropriate environmental approvals pathway for its future development.
Together, the investments underline Rio Tinto’s strategy of maintaining its position in the global bauxite market. This is while supporting the integrated aluminum value chain, from mining and alumina refining to aluminum production. Other mining companies such as Fortescue are looking toward renewables and battery storage to further support their Australian operations. Fortescue is doing this through its Pilbara Energy Connect network that has already delivered a battery storage system at North Star Junction in Western Australia.
Rio Tinto’s Australian aluminum operations
Rio Tinto’s Australian aluminum business spans bauxite mining, alumina refining and aluminum smelting. Bauxite from its Weipa operations supplies the company’s alumina refineries in Gladstone, Queensland, as well as export customers.
The company has operated in Cape York since 1963 through businesses that are now part of Rio Tinto. Additionally, its Australian aluminum operations directly employ more than 5,000 people and support thousands of additional jobs across the country.
Kangwinan is one of the company’s investments intended to maintain the supply of raw materials to its downstream facilities.
Kangwinan Bauxite Mining Project Fact Sheet
Location: Norman Creek, Western Cape York Peninsula, Queensland
Project owner and developer: Rio Tinto
Total estimated investment: US$1.9 billion
Early works investment: US$150 million, approved in 2025 and included in the total project estimate
Project status: Approved for development. Early works commenced in 2025
Construction ramp-up: 2027
Target first production: 2029
Expected full production: 2032
Annual production capacity to be added: 20 million tons of bauxite
Expected annual capacity at Weipa: Approximately 44 million tons, up from around 38 million tons.
Main project components: A new bauxite production center, and mining and processing infrastructure. Also included are a 15-kilometre conveyor, expanded stockyard facilities, and an expanded Amrun export wharf.
Port infrastructure: Expansion of the existing Amrun wharf to accommodate larger Capesize vessels.
Engineering, procurement and construction management partner: Bechtel
Expected construction employment: More than 1,300 jobs
Long-term regional workforce supported: Approximately 1,500 employees residing in Western Cape York
Expected internal rate of return: 22%
Environmental approvals: Secured through the South of Embley Environmental Impact Statement
Traditional Owner groups: Wik and Wik Waya, Alngith, Peppan and Wathayn peoples
Related development: Aurukun Bauxite Project, subject to the proposed acquisition and relevant approvals
Kangwinan Bauxite Project Developer, Contractor and Stakeholders
Rio Tinto – Project owner and developer
Bechtel Australia – EPC contractor
Industry Capability Network Queensland (ICN) – Project procurement and supplier engagement.
Traditional Owner stakeholders: Wik and Wik Waya, Alngith, Peppan and Wathayn peoples
Queensland Government and Australian Commonwealth government agencies. They are responsible for application regulations, environmental and statutory oversight.
Other project stakeholders include Glencore and Mitsubishi. The duo are existing owners of the adjacent Aurukun Bauxite Project. Aurukun’s proposed sale to Rio Tinto remains subject to government approvals.
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