Rio Tinto has agreed to acquire the Aurukun bauxite project in Queensland from Glencore and Mitubishi Development, expanding the company’s critical minerals portfolio in Western Cape York.
According to a Rio spokesperson, financial terms have not been disclosed and the deal remains subject to Queensland government and other Australian regulatory approvals.
If the acquisition proceeds, Rio Tinto would also assess the appropriate regulatory approvals pathway, in consultation with State and Commonwealth agencies, and work closely with Traditional Owners throughout the next stages of planning and development, the spokesperson added.
The deal would expand on Rio’s bauxite operations with the company’s Weipa operations located approximately 200km north of Aurukun, despite the project still being held under a mineral development licence and has yet to receive a mining lease.
Rio‘s Weipa operation produces over 30 million tonnes of bauxite annually, which is refined into alumina before being processed into aluminum metal. The project recently secured a $US180 million investment for commencing work at the Amrum bauxite operation to secure its long-term future.
The money will be used for the Norman Creek access road and will enable mining at an area said to hold approximately half of Amrum’s declared ore reserves of 978 million tonnes.
According to Reuters, Glencore noted in a statement that the joint venture has invested significant resources over the years to advance Aurukun’s design, development and approval and have concluded Rio’s ownership would provide a better opportunity for the project’s future.