Amrun
Amrun Bolstering bauxite in Queensland
A
business model built on sustainability and trust, Rio Tinto is a global mining and metal industry leader, with a pipeline of projects across more than 40 countries. Rio Tinto’s focus is on finding, mining and processing the Earth’s mineral resources. Whilst it continues to pursue many opportunities across the world, recently Rio Tinto approved US$1.9 billion for its Amrun (South of Embley) bauxite project. This construction will extend the life of its existing Weipa mine by approximately 40 years and significantly help the organisation meet China’s growing demands for Bauxite. Bauxite, the principal ore used in aluminium is an essential component used the world over. Its low density and strength make it ideal for constructing aircraft, cars and many modes of transport but also basic necessities such as drink cans and ladders. Whilst such commodities are often taken for granted, it is sites such as Amrun and organisations like Rio Tinto that make indispensable objects like these accessible every day. Highlighted in its last annual report, Rio Tinto is now prioritising the South of Embley (Ambrun) bauxite growth project at Cape York, Queensland in Australia as a crucial investment. Known as Amrun, the project includes mine, port and infrastructure elements, with a planned initial output of 22.8 million tonnes per year and options, using the same infrastructure, to later expand up to 50 million tonnes. Whilst it is 100% owned by Rio Tinto, the site’s name will be changed following a request from the traditional owners. Previously referred to as ‘South of Embley’, it has been agreed that the project is known as Amrun, so called after Wik-Waya which is the name for the area in which the processing and port facilities will be developed.
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Future proofing For more than half a century, Rio Tinto has mined bauxite at Weipa on Western Cape York and the Amrun project sits 40 kilometres south of the existing East Weipa and Andoom mines on the Cape York Peninsula in far north Queensland. Investigations into building a new mine on part of Rio Tinto’s existing lease began 10 years ago. South of the Embley River, between Weipa and Aurukun, the project secured all necessary permits and plans for the Amrun project were subsequently born. With the project receiving approval in November 2015, Amrun involves the construction of a bauxite mine and associated processing and port facilities on the Cape York Peninsula in north Queensland. At its peak, construction of the project is estimated to employ a workforce of around 1,100 people.
Nothing is too big, too far afield or too hard for us to handle REMONDIS is one of the world’s largest recycling, service and water companies. The Group operates across Europe, Africa, Asia and Australia with its comprehensive range of business activities to provide a sustainable supply of raw materials and water. Our Australian waste management expertise covers the full gamut: from general to construction waste, the recycling of scrap metal, safe removal of dangerous chemicals and industrial by-products, through to the management of, liquid waste treatment plants, material recovery facilities and landfills. Not only do we service the big cities worldwide, but we’re always on the spot to deliver our streamlined know-how to the most remote mining, oil and gas projects. We pride ourselves on our flexibility and far-reaching capabilities – of late, REMONDIS Australia’s collaboration with the multi-national mining giant – Rio Tinto, providing waste and recycling services to their operations in Cape York and Weipa at the far-flung northern tip of Australia. With access only via unsealed roads in the dry season and by barge in ‘the wet’ it’s a logistics challenge that only the best in the business can surmount. But Rio Tinto is working on the construction of its isolated Amrun Project south of Weipa and has asked for our help. As ever, REMONDIS Australia is ready and willing to give it.
Once operational, Amrun will support ongoing employment for existing workers and contractors at Rio Tinto’s Cape York bauxite operations; an estimated 1400 employees. Currently holding 1.49 billion tonnes of bauxite reserves and 1.91 billion tonnes of resources in the Cape York Region, Rio Tinto is confident the Amrun project will only serve to strengthen the site. Continuing to maintain its long partnership with Traditional Owners on Cape York, Aboriginal and Torres Strait Islander citizens make up almost a quarter of employees on the site. The Amrun project will follow this ethos and continue to create opportunities for indigenous people from Cape York and the surrounding region. Supply Chain Sustainability Rio Tinto has engaged some of the best providers in the sector to ensure this project meet its goals. Goodline has been awarded a contract by Rio Tinto to build the barge and ferry berths and other facilities that will enable
construction workers, equipment and materials to be safely transported across the Hey River from Weipa to service the Amrun project site. Jan De Nul (Australia) Pty Ltd handled dredging work, Tefco Engineering provided conveyor belts and other partners include ABB, Boral Resources, Siemens just to mention a few. Rio Tinto understands that procurement and employment practices implemented by the company and contractors play a significant role in the creation of sustainable employment and economic development opportunities. Companies such as Remondis Australia was contracted to handle waste management, CSE-
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Transtel handled site Communications, Falck provided 24 hour security, paramedical services and support (All Emergency Services) and indigenous firms including FNQ Civil Group, Federal Tyres, Indigenous Pathway Solution all continue to contribute in a mutually benefitting relationship. Prolonged profitability Expanding output from one of the world’s premier bauxite deposits, Amrun’s planned initial production is 22.8 million tonnes a year. This excavation will replace production
from the depleting East Weipa mine and increase bauxite exports from Cape York by around 10 million tonnes a year. Amrun is expected to begin production in the first half of 2019 with full production following by the end of the year. The project has been designed to provide opportunities for future expansion and aims to yield up to 50 million tonnes a year. During the initial construction, the majority of capital expenditure for the Amrun project is forecast for 2017 and 2018. Rio Tinto chief executive Sam Walsh supports the project and explained the importance of it, “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. In addition to generating attractive returns, with mining costs in the first quartile of the industry cost curve, it will provide jobs and strengthen the economy for the people of Cape York and Queensland for many decades.” Walsh continues, “This long-life, low-cost, expandable asset offers a wide variety of development options and pathways over the coming decades. 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.”
Oliver Moy Publisher For enquiries email okm@aubusinesscoverage.com