Rio Tinto Just Found Its Next Bauxite Bet in Queensland
Synopsis
Rio Tinto agreed to acquire Queensland's Aurukun Bauxite Project from Glencore and Mitsubishi Development, with financial terms undisclosed and regulatory approvals still required.
Rio Tinto is in talks to buy the Western Cape York development from Glencore and Mitsubishi Development, making the bauxite company the target of a potential acquisition.
The deal, which has yet to be finalized, is subject to Queensland government and other Australian approvals, and a mining lease over the asset.
Aurukun Deal Brings Cape York Project Under Rio Tinto
The project is located 23 km to the north-east of Aurukun and 35 km to the south of Weipa.
It is 70% owned by Glencore and 30% owned by Mitsubishi Development. Mitsubishi Development joined the partnership in 2021, and Glencore is now leading the development of the project.
Production from this mine is expected to reach 15 million tonnes of run-of-mine bauxite annually, equivalent to 8 million tonnes of washed bauxite per year.
As a result, the business is expected to have a twenty-plus-year lifespan. An open-cut mine, on-site processing, and an associated haul road and coastal terminal are planned for the site.
Latest Rio Tinto Results Show Scale of Existing Bauxite Business
The Rio Tinto Aurukun Bauxite Project is the miner’s underlying sales revenue for the six months ended 30 June 2026, which is US$31.03 billion.
Meanwhile, the EBITDA jumped by US$1.23 billion, or 9.1 per cent, underlying while net earnings grew US$665 million, increasing by 10.5 per cent. Additionally, the firm’s operating cash flow came to US$9.17 billion during the same period.
Compared to the same period last year, Rio Tinto’s attributable bauxite production dropped by 7 per cent, with output expected to total between 58-61 million tonnes in 2026.
The Rio Tinto Aurukun Bauxite Project would be constructed close to existing Rio Tinto bauxite operations in Australia’s Weipa region, which includes the mining of the Amrun and East Weipa.
Australia Ranks Second in Global Bauxite Output
According to the Mineral Commodity Summaries 2026 of the USGS, 440 million tonnes of the metal will be produced worldwide in 2025. Australia came second with 97 million tonnes, compared to China’s 87 million tonnes and Guinea’s 150 million tonnes.
The report by the United States Geological Survey (USGS) indicates that Brazil is expected to be the fourth-largest producer of bauxite in 2025, with 33 million tonnes. In fifth place, India produced 25 million tonnes of the metal, while sixth-place Indonesia produced 10 million tonnes.
The development of the Rio Tinto Aurukun Bauxite Project is ongoing. If the acquisition comes to fruition, Rio Tinto will need to engage with the appropriate state and Commonwealth authorities about the project’s approval process and manage it in accordance with Traditional Owners.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
