Mining giant Rio Tinto (RIO) said on Tuesday it has agreed to acquire the Aurukun bauxite project in Western Cape York, Queensland, from a joint venture between Glencore and Mitsubishi Development. Financial terms were not disclosed, and the deal remains subject to approval by the Queensland government and other Australian regulators.
The project currently holds a mineral development license but has not yet secured a mining lease. Once completed, the acquisition would fold the asset into Rio Tinto’s existing bauxite operations in the region, expanding its local footprint.
In a separate statement, Glencore said the joint venture had invested significant resources over several years to advance the project’s design, development and approvals. After evaluating its options, the venture concluded that Rio Tinto’s ownership offered the best opportunity for future development of the resource, given the company’s established bauxite operations nearby.
A Rio Tinto spokesperson said the company would pursue the necessary regulatory approvals and continue discussions with Traditional Owners as it develops plans for the project.
However, the Wik Waya people, the Traditional Owners of the land, told The Australian newspaper that they had not been adequately consulted. Former Aurukun Mayor Keri Tamwoy criticized the process, saying Glencore had not sat down with affected Traditional Owners to explain its plans, and that the project would affect local people’s future in employment, education and health.
On the same day, Rio Tinto reached an interim modernized agreement with the Ngarlawangga Aboriginal Corporation to establish a jointly designed co-management approach for Ngarlawangga Country. The agreement updates a 2011 participation framework and requires earlier and ongoing engagement throughout a mine’s entire lifecycle.
Rio Tinto shares closed down 0.7 percent at A$176.17 on Tuesday.
