World Aluminium Market reported that China's biggest aluminium maker will revive its controversial bid for rich bauxite deposits on Cape York Peninsula, pitching it against mining giant Rio Tinto and five other contenders.
Chalco has moved after Queensland's Liberal National Party government dropped a condition the successful developer of the Aurukun bauxite lode also build a refinery to process the ore in Australia.
The latest figures on foreign land purchases in Queensland the only state to collect and publish comprehensive data reveal Chinese investors snapped up USD 234 million worth of country last financial year more than double its nearest rival, Britain. Government owned Chalco, the world's second biggest alumina producer was confident its existing bond with the Aurukun community would put it ahead of its competitors.
The company held leases over the 650 million tonne lode until 2011, when the then Labor state government cancelled the USD 3 billion deal after Chalco decided building a refinery was not viable. Chalco would not confirm how much its latest offer was worth, but it is understood the final contract will need approval from the Foreign Investment Review Board.
Mr Jeff Seeney deputy Premier kicked off a new expressions of interest process late last year and it has just finished, with seven bids received from global and local mining companies. The Weekend Australian has confirmed that as well as Chalco, domestic miner Cape Alumina and giant Rio Tinto Alcan are three of the contenders. Japan's Mitsubishi Australia and Russia's RUSAL refused to comment while Alcoa and Mitsui said that they did not take part.
Mr Seeney said that the government would shortlist up to 5 proponents by April and then decide on a preferred developer by the end of the year. The government is committed to working with the people of Aurukun to deliver a world class bauxite mine.
Mr Aurukun mayor Derek Walpo said that when the mine finally got off the ground it would be hugely beneficial for the town which has 1200 residents and an unemployment rate of 22%.
Companies have been vying for the resource worth up to USD 25 billion depending on the market value of the ore, since the Bjelke Petersen government first granted the leases in 1975. In 2003, then premier Peter Beattie cancelled the leases (held by French company Pechiney) and invited other companies to express interest.
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