0257 GMT - Rio Tinto says it wants to raise production capacity at the Amrun bauxite operation in Australia to replace output from two other mines that are closing. But Panmure Liberum analysts Duncan Hay and Tom Price wonder if there is more to it. "Rio's bauxite expansions in Queensland may just be replacement of fading mines," they say. "But don't rule out a move to capitalize on a Guinea-related shortfall in global supply." Bauxite prices have been climbing as Guinea cancels mining licenses, putting a cloud over future supplies from one of the world's top sources of the aluminum-rich ore. It is possible that "Rio has been engaged by China-based bauxite buyers, offering long-term offtake deals, part of a plan to mitigate rising risk of Guinea supply," the analysts say. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
May 25, 2025 22:57 ET (02:57 GMT)
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