Rio Tinto Okays $1.9 Bln Amrun Bauxite Project

(RTTNews) - Mining giant Rio Tinto Plc. (RTPPF.PK, RIO.L, RIO, RTNTF.PK) said it would expand output from one of the world's premier bauxite deposits following approval of the $1.9 billion Amrun project.

The Amrun project includes the construction of a bauxite mine and associated processing and port facilities on the Cape York Peninsula in north Queensland.

The planned initial output is 22.8 million tonnes a year, replacing production from the depleting East Weipa mine and increasing annual bauxite exports from Cape York by around 10 million tonnes.

Production and shipping are expected to commence in the first half of 2019, ramping up to full production by the end of the year.

The project's design provides options for future expansion to 50 million tonnes a year. The majority of capital expenditure for the Amrun project is scheduled for 2017 and 2018.

At its peak, construction of the project is expected to provide work for around 1100 people.