Rio Tinto to invest $1.9 billion in Kangwinan bauxite project in Queensland

what happened

Rio Tinto said it will invest $1.9 billion in developing the Kangwinan bauxite project on the Western Cape York Peninsula in Queensland, Australia. According to the company, the project will expand its Weipa Operations, lifting annual capacity to about 44 million tonnes from around 38 million tonnes today. First output is planned for 2029, with full production expected by 2032, as reported by Dow Jones Newswires and the company's statement via TradingView.

Kangwinan will replace output from the Andoom mine, which is nearing the end of its life this decade, and partly offset the planned 2029 closure of the Gove mine in the Northern Territory. Rio Tinto also agreed to acquire the neighbouring Aurukun Bauxite Project from Glencore (70%) and Mitsubishi (30%), subject to government approvals.

why it matters

Bauxite is the main raw material for aluminium, so long-term growth in supply matters for the metal market. The company puts the project's internal rate of return at about 22%, based on third-party market forecasts as at Q4 2026.

market impact

Aluminium: higher future bauxite supply eases long-term raw material risks for smelters

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