Rio Tinto approves $277m investment in Norman Creek project
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The news: Mining giant Rio Tinto has approved investment of USD180 million ($277 million) and commenced work on the Norman Creek access project at the Amrun bauxite mine on Queensland’s Cape York Peninsula.
The numbers: Rio Tinto shares were down 0.4% to $112.45 at 11:30am AEST, as the ASX 200 lowered 0.1%
The company said 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 978 million tonnes.
Construction is now 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.
The context: Rio Tinto has also 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.
What they said: "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," said Armando Torres, Rio Tinto's managing director for Pacific aluminium.
"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 source: Rio Tinto media release
