Rush for Aurukun mine's millions
MINERS are lining up for a crack at Aurukun's rich bauxite deposit, following the collapse of the long-running deal between the Queensland Government and Chalco.
The Chinese aluminium giant has put its plans to develop a lucrative mine at Aurukun on Cape York on hold after the Queensland Government and the company allowed their 2007 agreement to lapse.
Chalco blamed a drop in aluminium prices and difficult global conditions for the decision to shelve the project.
As well, there have been reports the Federal Government’s super mining tax may be behind the shelving.
But the super mining tax may be resolved between the Federal Government and the industry as early as today.
Chalco had two years to complete a feasibility study into the project, but failed to meet its Wednesday deadline.
The company was awarded the permit to mine bauxite on the condition it built a $2.2 billion refinery at Abbot Point near Bowen, south of Townsville.
The company had pledged to spend $30 million on indigenous employment in Aurukun, which is a disadvantaged area.
In a statement, Chalco chief executive Xiong Weiping said the company was assessing its options.
"We look forward to discussing new development and investment options for Chalco with respect to the Aurukun resources," he said.
Western Cape Chamber of Commerce chairman Vance Wallin urged the Queensland Government to return the Aurukun lease to tender.
"Realistically, I think it should go back into the melting pot, because (Chalco) has reneged on the smelter side of things," Mr Wallin said.
"That was always part of the deal and now that’s not going on, I think there are a number of companies that would be keen on that lease that should be back in the mix."
One of the companies, Cape Alumina, is expected to announce today its interest in mining the deposit.
The company’s $1.2 billion Pisolite Hills project is under threat because of the Wild Rivers status imposed by the State Government on the nearby Wenlock River.
In Townsville yesterday, Premier Anna Bligh said the Government would continue discussions with Chalco.
"They still want to bring the mine to market and we want it to happen," Ms Bligh said.
Opposition mines spokesman Jeff Seeney said Chalco’s decision to let its lease lapse need not stop other investors proceeding with the project.
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Valuable commodity:The collapse of the Chalco deal has opened up opportunities for other mining groups at Aurukun in Cape York.
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