Rio Tinto locks in $276m for Amrun

Rio Tinto (ASX: RIO) has approved an investment of $276m (US$180m) and commenced work on the Norman Creek access project at its Amrun bauxite mine on Queensland’s Cape York Peninsula.

The Norman Creek access project will enable mining of the Norman Creek region of Amrun, which holds approximately half of the currently declared Amrun ore reserves of 978mt.

Construction is underway on key infrastructure, including a 19-kilometre haul road, camp accommodation and a communications tower.

First production from Norman Creek is targeted for 2027, with full construction completed in 2028.

Rio Tinto pacific operations aluminium managing director Armando Torres comments on the updates.

“Norman Creek is another important step in securing the long-term future of our Weipa operations and the benefits that mining brings to communities in the region, Queensland, and the nation,” he said.

“It will maintain jobs in the region through to at least the middle of this century, ensuring continuity for our people and the Weipa community.

“The decision to approve Norman Creek reflects the quality of Western Cape York’s world-class bauxite deposits, combined with the strong operational improvements our people are making at Amrun that are bolstering our confidence to invest for the long-term.”

In addition to the Norman Creek project, Rio Tinto recently announced it had started early works and a final feasibility study on the Kangwinan project, which includes early works and final engineering studies to increase production capacity at the Amrun bauxite mine.

If approved, Kangwinan would increase annual bauxite production capacity from Rio Tinto’s Weipa Southern operations, by up to 20mt, in addition to the current 23mt, and expand export capacity through the Amrun port.

Production from the Kangwinan project would replace output from the Andoom mine on Cape York and the Gove mine in the Northern Territory, which are both expected to close toward the end of the current decade. First output from the Kangwinan project could be as early as 2029.

The project was named Kangwinan at the request of Traditional Owners, the Wik Waya people.