Rio Tinto acquires Aurukun bauxite project from Glencore, Mitsubishi
The deal comes as Rio Tinto looks to end operations at its Gove bauxite mine in Australia’s Northern Territory by 2030.
Rio Tinto (RIO) is set to acquire the Aurukun Bauxite Project in Queensland, previously operated jointly by Glencore (GLEN) and Mitsubishi Development. This acquisition will enhance Rio's bauxite operations in the area, complementing its existing Welpa operations, which are situated approximately 200 kilometers north of Aurukun. Weipa, an existing Rio Tinto facility, currently produces over 30 million tonnes of bauxite annually, which undergoes refinement to produce alumina and further processed into aluminum metal.
Glencore had a controlling stake in Aurukun, while Mitsubishi held about 30% of the project. Glencore had previously invested substantial resources into advancing the project, according to Reuters. Both Glencore and Mitsubishi agreed that Rio Tinto was the ideal candidate for the project's future development due to its existing bauxite mines in the region, as stated by Glencore.
The Aurukun project is currently under a Mineral Development Licence and has not yet received a Mining Lease. Traditional Owners, the Wik Waya people, have expressed concerns, as they were not consulted regarding the sale and the subsequent change in operations. Rio Tinto is committed to continuing discussions with the Traditional Owners, ensuring the project proceeds smoothly.
Financial details of the deal have not been disclosed, and the transaction still requires approval from Queensland's government and other Australian regulatory bodies, as reported by a source to Reuters.
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