A $US1.9 billion ($2.64 billion) bauxite mining project has been approved by Rio Tinto in Queensland. Called Amrun, the site will initially produce 22.8 million tonnes per annum of the mineral ore used to produce alumina and aluminium.
The site, located 40km south of Weipa near the top of Queensland, will include construction of a mine, processing infrastructure, a power station, storage as well as a new port containing barge, ferry and ship loading facilities.
Production can potentially be ramped up to 50 million tonnes per annum: Rio Tinto envisions the site as replacing production from the depleting East Weipa mine. On opening, it will increase overall bauxite exports from Queensland’s Cape York by about 10 million tonnes per annum.
Rio Tinto chief executive Sam Walsh called it a tier one asset that would deliver significant benefits to the company’s stakeholders.
“This long-life, low-cost, expandable asset offers a wide variety of development options and pathways over the coming decades,” explained Walsh. “We are establishing Cape York bauxite as the product of choice for the Chinese seaborne market with consistent quality, security of supply and strong technical marketing support. Amrun will be significant in helping to meet growing bauxite demand from China.”
Queensland Premier Annastacia Palaszczuk said the site would support the ongoing employment of 1400 people in Weipa as well as the 2000 or so people at bauxite refineries in Gladstone. During construction, the site would employ an average workforce of 600 people over three years.
Site establishment works are expected to start in December. The first shipment of bauxite is scheduled for 2019.