Aluminum Corp. of China (Chalco)
announced on July 1, 2010, it had
agreed with the Queensland state gov-
ernment to terminate a development
agreement dating from March 2007 for
development of the Aurukun bauxite
deposits on the Cape York peninsula and
an alumina refinery near Bowen,
Queensland. The agreement was allowed
to terminate automatically after its June
30, 2010, expiration date. Chalco cited
adverse changes in the aluminum indus-
try since the signing of the agreement,
including lower aluminum prices, rising
project development and labor costs,
and other unfavorable factors, as rea-
sons for the termination. Costs to devel-
op the project have been estimated at
A$3 billion.
News reports indicated Chalco had
approached the state government regard-
ing the possibility of taking the alumina
refinery out of the development scenario
but that the government would not give
ground on that issue. Reports also indi-
cated that Chalco has spent about
A$100 million on feasibility studies for
the project.
Chalco and the Queensland govern-
ment said they would continue discus-
sions regarding development and invest-
ment options with respect to the Aurukun
resources.
The government also has the option of
tendering the resources for bids from
other potential developers.
As featured in Womp 2010 Vol 06 - www.womp-int.com