Original news was published on 02 December, 2015

Global mining giant Rio Tinto has approved a massive infrastructure development that will expand its output in northern Australia and create the US$1.9 billion Amrun project.

The project involves the construction of processing and port facilities to serve a new bauxite mine on the Cape York Peninsula. It will be located about 40 kilometers south of Rio Tinto’s existing East Weipa and Andoom mines.

“Amrun is one of the highest quality bauxite projects in the world. In addition to generating attractive returns, with mining costs in the first quartile of the industry cost curve, it will provide jobs and strengthen the economy for the people of Cape York and Queensland for many decades,” said Rio Tinto CEO Sam Walsh.

The mine is expected to deliver 22.8 million tons a year and will replace output from Rio Tinto’s East Weipa mine which is forecast to see production fall sharply.

Rio Tinto has allocated capital expenditure for the project to take place in 2017 and 2018 and predicts the first shipments will leave the mine in 2019 with full production ramping up over the course of 12 months.

“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. Amrun will be significant in helping to meet growing bauxite demand from China,” Walsh added.

*NEWS SOURCE