Rio Tinto wins go-ahead for South of Embley bauxite project

Federal Environment Minister Tony Burke has finally given Rio Tinto the go-ahead for the $1.4 billion South of Embley bauxite expansion near Weipa on Cape York Peninsula, more than a year after the miner was sent back to the approvals drawing board to deal with Great Barrier Reef shipping concerns.

Rio Tinto welcomed the decision, which sees the project 18 months behind schedule and, as a result, coming before the Rio board for development funds at a time of cost-cutting and curbs on new spending.

"The South of Embley project would ensure our Weipa operations generate employment and other economic benefits for another 40 years," Rio Tinto Alcan bauxite and alumina chief Pat Fiore said.

The project would extend the Weipa operations to an area south of the Embley River on the western side of the peninsula.

Mr Fiore alluded to Rio's frustrations at having to delay development to deal with what many in the company regard as unfounded shipping concerns raised by the Wilderness Society.

"The project does not substantially change the number of bauxite ships traversing the reef and the environmental impact statement shows that potential impacts on the environment can be managed," he said. "In fact, the project will initially result in less bauxite ships traversing the reef as higher quality ore is accessed."

Under the new timetable, Rio is targeting construction start, pending board approval, this year with first bauxite aimed for 2016.

South of Embley will produce up to 50 million tonnes of bauxite a year from an area 40km south of Weipa, most of which will be exported to Asia. Some bauxite will be shipped around Cape York Peninsula and down the Queensland coast to Gladstone.

Rio's EIS says that when South of Embley is operating at full capacity it will account for an extra 60 ship movements each year through the Great Barrier Reef Marine Park.

This would account for 0.4 per cent of the 14,455 movements expected in the park in 2020.

The extra bauxite that will be shipped to Gladstone will help feed a $2.5bn expansion of the Yarwun alumina refinery there that was completed this year.