Rio awards A$900m in contracts as Amrun mine development progresses

24th March 2017 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

Rio awards A$900m in contracts as Amrun mine development progresses

Photo by: Rio Tinto

PERTH (miningweekly.com) – Production and shipping from the Amrun bauxite mine, in Queensland, is on track to start in the first half of 2019, with mining major Rio Tinto this week announcing the award of more than A$900-million of contracts to Queensland suppliers.

Queensland Premier Annastacia Palaszczuk said Rio’s significant investment in local and regional suppliers will provide a tremendous boost to the economy of Queensland.

“The Amrun project will ensure Queensland businesses and their employees will continue to reap the benefits of many development opportunities for years to come.

“It is a best practice example of encouraging local and Indigenous participation with substantial employment targets already agreed with many key suppliers.”

Rio Tinto CEO Jean-Sébastien Jacques said the company was proud of the contribution the asset was making in supporting Queensland communities, pointing out that more than 1 600 people have been engaged by contractors to work on the project so far. Around 77% of those contracted are from Queensland and 70% are new hires.

The Amrun project will replace the depleting East Weipa bauxite mine and will increase overall bauxite exports from Cape York by around ten-million tonnes a year.

The A$2.6-billion project will produce at an initial rate of 22.8-million tonnes a year, with the option to expand to up to 50-million tonnes a year.