Rio Tinto has approved a $US180 million ($276 million) investment to develop the Norman Creek area at its Amrun bauxite operations in Queensland.
Construction is already underway on key infrastructure including a 19km haul road, camp accommodation and a communications tower.
The development will enable mining in the Norman Creek region, which contains around half of Amrun’s 978 million tonnes of declared ore reserves. First production is expected in 2027, with full construction completion targeted for 2028.
Rio Tinto pacific operations aluminium managing director Armando Torres said the project was essential to supporting jobs and local communities over the long term.
“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,” Torres 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.”
The announcement follows Rio Tinto’s recent commencement of early works and a final feasibility study on the proposed Kangwinan project, which would further expand production capacity at Amrun by up to 20 million tonnes a year, in addition to the current 23 million tonnes.
Named at the request of the Traditional Owners, the Wik Waya people, Kangwinan is designed to replace output from the aging Andoom and Gove mines, both expected to close by the end of the decade. First production from Kangwinan could begin as early as 2029.
The Norman Creek investment will be classified as replacement capital and is already included in Rio Tinto’s broader capital expenditure guidance.