Mining major Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) will invest US$180 million in the development of the Norman Creek access project at its Amrun bauxite operation on Queensland’s Cape York Peninsula.
The project will unlock access to the Norman Creek region, which accounts for roughly half of Amrun’s currently declared ore reserves of 978 million tonnes. Key infrastructure works are already underway, including the construction of a 19-kilometre haul road, camp accommodation and a communications tower. First production is targeted for 2027, with full construction completion expected in 2028.
The investment is considered replacement capital and is included in Rio Tinto’s capital expenditure guidance.
In parallel, the company has commenced early works and a final feasibility study for the Kangwinan project, which aims to boost annual bauxite production at Amrun by up to 20 million tonnes. This would be in addition to the current 23 million tonnes from Rio Tinto’s Weipa Southern operations and would require expanded export capacity at the Amrun port. First production from Kangwinan is expected in 2029, subject to approval.
Kangwinan is intended to offset future declines from the Andoom mine on Cape York and the Gove operation in the Northern Territory, both of which are forecast to cease production later this decade.