Metro Mining’s concern over Rio Tinto’s Aurukun plans brings 3.1Bt bauxite in focus

Metro Mining has raised concerns over Rio Tinto’s proposed acquisition of the Aurukun bauxite project in Cape York, warning that the leases could remain undeveloped under the mining giant’s ownership. Metro Mining Managing Director Simon Wensley mentioned that Rio Tinto already controls a 3.1 billion-tonne bauxite resource on Cape York, enough to suffice for around 75 years of production at current levels.

Metro questions another change of hands

Speaking at a recent Association of Mining and Exploration Companies meeting in Brisbane, Wensley noted that Rio could land bank the Aurukun leases, following a similar pattern under Glencore, which had held them for 14 years.

Metro Mining is seeking to delay the proposed transfer of the leases from Glencore to Rio Tinto. In September, Rio announced that it had agreed to acquire the Aurukun bauxite project from Glencore and joint venture partner Mitsubishi for an undisclosed amount.  

The greenfield project is located around 35 kilometres south of Weipa and 23km north-east of Aurukun.

Explore the production, demand and consumption forecasts of bauxite and alumina in our report: "Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook"

Queensland holds a crucial lever

According to Wensley, the Queensland Government has significant scope to influence the proposed transfer because the Aurukun lease operates under a state agreement.

“The decision needs to be ratified twice in the current legislation. So, unusually, this lease exists under a state agreement. That’s quite unusual for a mineral lease in Queensland,” he said.

Additionally, the arrangement gives the government contractual influence over how the deposit is developed, effectively placing it in a position similar to a joint venture partner when approving the transfer.

The Minister for Resources also retains powers under the Mineral Resources Act to prevent a lease transfer, with potential benefits to the state providing grounds for such a decision, Wensley said.

Looking for alumina refinery raw materials? Compare grades, explore sourcing options, and connect with global suppliers on AL Biz.

Metro pitches a faster route to production

Wensley argued that Metro could move the Aurukun resource into production faster than Rio, pointing to the lease’s long history and the lack of an independent mine on the Weipa Bauxite Plateau.

The lease has been existing for “over 40 years now, and it’s been passed from one overseas multinational to another to another.” He observed that “It’s the last remaining bauxite resource of sufficient size to underpin an independent mine.”

He added that Metro had already demonstrated its ability to assemble leases, build and expand an operation, create employment and establish a trans-shipping operation without government support.

So, Wensley believes that Metro Mining has “the credibility and we’ve got the confidence and the track record to develop an independent mine on that Aurukun deposit.”

Plans previously advanced by Glencore and Mitsubishi envisaged production of up to 15Mtpa of run-of-mine bauxite, equivalent to as much as 8 million dry tonnes per annum (MDTPA) of exportable product bauxite.

The environmental impact statement (EIS) assessment report released last year estimated a net benefit of about USD 482 million to Queensland and projected 350 to 406 jobs during the mining operations.

Unlock key insights from leading companies and experts across the aluminium ecosystem with our e-Magazine - Mine to Market: Aluminium Producers & Manufacturers 2026

Rio Tinto awaits approvals

Rio Tinto confirmed that it had agreed to acquire the Aurukun bauxite project from Glencore and Mitsubishi. However, the project currently remains under a Mineral Development Licence, with a Mining Lease yet to be granted.

“The acquisition is for an undisclosed price and remains subject to relevant Queensland Government and other Australian regulatory approvals,” Rio Tinto stated.

The company added that, if the acquisition proceeds, it would assess the appropriate regulatory approvals pathway in consultation with state and Commonwealth agencies and work closely with Traditional Owners during the next stages of planning and development.