Rio Tinto to Buy Aurukun Bauxite Project from Glencore

Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) has agreed to acquire the Aurukun bauxite project in Northern Queensland from a joint venture between Glencore (LSE:GLEN,OTCPL:GLCNF) and Mitsubishi Development.

Located in Western Cape York, the project currently operates under a mineral development license and has yet to receive a formal mining lease. The acquisition would feed into Rio Tinto's existing bauxite network in the region.

In a statement cited by Reuters on Tuesday (September 8), Glencore notes that the joint venture spent years investing substantial resources to advance the project's design and development.

However, after assessing its options, the joint venture concluded that Rio Tinto's ownership would provide the best opportunity for future development given the mining giant's established bauxite operations nearby.

As Rio Tinto prepares to integrate the site, it faces immediate hurdles regarding community relations.

Representatives of the Wik Waya people, who are the traditional owners of the land, told the Australian they have not been adequately consulted about the project.

“Glencore did not have the common decency to sit with the affected traditional owners and explain what they planned to do with our land,” former Aurukun Mayor Keri Tamwoy said.

“This affects our people and their future in work, in education, in health, everything.”

A Rio Tinto spokesperson said the company will pursue the required regulatory clearances and keep engaging with traditional owners as it develops its plans for the project.

The mining giant is simultaneously working to modernize its Indigenous partnerships elsewhere in the country.

Also on Tuesday, Rio Tinto reached an interim modernized agreement with the Ngarlawangga Aboriginal Corporation to establish a jointly designed co-management approach for Ngarlawangga Country. The deal updates a 2011 participation framework to mandate earlier and ongoing engagement throughout a mine's entire lifecycle.

The Aurukun acquisition secures upstream supply for Rio Tinto’s downstream alumina refineries in Gladstone, Queensland, where the company is currently overhauling its energy mix.

In July, Rio Tinto signed a five year offtake agreement with SuperChar to supply bio pellets for its Yarwun and Queensland Alumina facilities. SuperChar intends to construct a production facility in the Gladstone region capable of manufacturing 35,000 metric tons per annum of bio pellets using locally grown bana grass.

At planned contract volumes, the fuel switch could reduce Rio Tinto's Scope 1 emissions by up to 90,000 metric tons of carbon dioxide equivalent annually.

Overall, production metrics remain strong for the miner. Rio Tinto reported a 5 percent year-on-year increase in global iron ore sales for the second quarter of 2026, reaching 89 million metric tons.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.