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Rio Tinto (ASX: RIO) has agreed to acquire the Aurukun Bauxite Project in Queensland, previously a joint venture between Glencore (LON: GLEN) and Mitsubishi Development, a company spokesperson told Reuters.
The deal would expand Rio’s existing bauxite operations in the region, with its Welpa operations located approximately 200km north. Weipa produces over 30 million tonnes of bauxite annually, which is refined into alumina before being processed into aluminum metal.
Glencore held a majority stake in Aurukun, while Mitsubishi owned about 30%. Glencore previously said it had invested significant resources to advance the project over the years, according to Reuters.
Both companies agreed that Rio Tinto would provide the best opportunity for the project’s future development since it already operates bauxite mines in the region, Glencore said.
Project hurdles
The Aurukun project remains under a Mineral Development Licence and has yet to receive a Mining Lease.
Traditional Owners, the Wik Waya people, told The Australian that they had not been consulted about the sale and change in operations. A Rio Tinto spokesperson said the company aims to continue discussions with the Traditional Owners and the project progresses.
Financial terms were not disclosed and the deal still needs Queensland’s government and other Australia regulatory approvals, a source told Reuters.
(With files from Reuters and Bloomberg News)
