SYDNEY: Mining giant Rio Tinto PLC yesterday announced the approval of a US$1.9 billion bauxite project in Australia to better meet growing demand from China.
The Amrun project is to involve the construction of a bauxite mine, and associated processing and port facilities on the Cape York Peninsula in Queensland state’s far north.
“Amrun is one of the highest quality bauxite projects in the world,” Rio Tinto chief executive Sam Walsh said.
“It is a tier-one asset that will deliver significant benefits to our stakeholders,” he added.
Amrun is located 40km south of Rio’s existing bauxite mines on the peninsula, East Weipa and Andoom.
Rio said it plans an initial output of 22.8 million tonnes per year from the new mine, replacing production from the depleting East Weipa and extending annual Cape York bauxite exports by about 10 million tonnes.
The project was approved by Australia’s federal environment regulators in May 2013 and was originally expected to be exporting 22 million tonnes annually by this year.
However, reduced capital spending and extra studies delayed the project’s approval.
Walsh said that the project would provide jobs and strengthen the economy in Cape York and Queensland for many decades, with production and shipping expected in the first half of 2019.
“This long-life, low-cost, expandable asset offers a wide variety of development options and pathways over the coming decades,” he said.
“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,” Walsh added.
Prices for bauxite, which is used to make aluminium, have soared in recent years as China’s supply of the material has deteriorated.
