Rio Tinto Group, the world’s second-biggest miner, is advancing talks with potential customers in China for its new $1.9 billion (€1.79 billion) bauxite project in Australia that will be built to meet demand in the world’s most populous nation.

The Amrun project in Queensland, includes a bauxite mine and will have initial production of about 22.8 million metric tons a year, Rio said.

Output and shipping is due to start in the first half of 2019. Producers are adding new bauxite capacity as China’s imports surged 49 per cent to 6.8 million metric tons in September.

The Amrun project will be “significant in helping to meet growing bauxite demand from China,” chief executive Sam Walsh said. Rio said it can win an advantage in bauxite because of the nation’s proximity to China. Bauxite is used to make aluminium.