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British-Australian mining corporation Rio Tinto has approved the USD 1.9 billion Amrun bauxite project that will see 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 company said. 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.

“Amrun is one of the highest quality bauxite projects in the world. It is a tier one asset that will deliver significant benefits to all our stakeholders,” Rio Tinto chief executive Sam Walsh said.

“ We are establishing Cape York bauxite as the product of choice for the Chinese seaborne market with consistent quality, security of supply and strong technical marketing support. Amrun will be significant in helping to meet growing bauxite demand from China.”