Rio considering Chinese JV partner for Amrun bauxite mine expansion

Profit or no profit, mining giant Rio Tinto ­remains committed to the $2.6 billion Amrun bauxite mine ­expansion near Weipa. And for that, the conglomerate is considering a joint venture partner that would help it fund the wholly owned project.

It is known from the company sources that construction work at the site has already started. It will provide around average 600 jobs over three years, peaking at 1100.

Rio’s profits have been falling 51 per cent to $6.3 billion and accessing capital for major investments has been becoming tougher of late. Nevertheless, the company wants to go ahead with the extension. Rio chief executive Sam Walsh said Chinese investment in Amrun was under consideration.

It was most likely to be state-owned Chinalco, Rio Tinto’s biggest shareholder with a 9.9 per cent stake. “To the extent that the dynamics are right, yes we would consider that,’’ he said.

Rio would retain a majority interest in the project, Walsh said in an interview. Other options under consideration include third-party leasing of “some parts of equipment,” he added.