Rio Tinto commits $1.9 billion to Queensland bauxite project
Rio Tinto announced a $1.9 billion investment in the Kangwinan bauxite project at Weipa in Queensland. The development is expected to add 20 million tonnes of annual capacity, with initial production planned for 2029 and full output targeted in 2032. Weipa Operations' capacity is expected to reach about 44 million tonnes from around 38 million tonnes per year as Andoom production winds down.
Why it matters
The project is intended to maintain Weipa's production base as the Andoom mine nears the end of its life and Gove production is planned to end in 2029. Rio Tinto estimates a return rate of approximately 22%, using external market projections available in Q4 2026.
Key facts
- 1Rio Tinto's $1.9 billion capital estimate includes $150 million for early works approved in 2025. marketscreener.com
- 2Kangwinan is expected to increase annual bauxite capacity by 20 million tonnes, with first output targeted in 2029 and full production expected by 2032. marketscreener.com
- 3Weipa Operations' annual capacity is expected to rise to about 44 million tonnes from around 38 million tonnes per year. marketscreener.com
- 4The project is expected to support more than 1,300 construction jobs as work ramps up in 2027. marketscreener.com
- 5Rio Tinto expects an internal rate of return of approximately 22%, using third-party market projections from Q4 2026. marketscreener.com
Open questions
- One material says the investment remains subject to regulatory approvals and final decisions, while another says the project's environmental permits were previously secured; the materials do not clarify whether additional approvals remain outstanding.
Summary written by AlphAI AI Desk from 10 of 10 sources. Not investment advice. Figures are as stated by the linked sources.