Miners bid to develop Australian bauxite project
Glencore and Chinese group vying to win rights to mine in Queensland after rivals pull out
Glencore Xstrata and China's Australian Indigenous Resources have submitted proposals to Australia's Queensland government to develop the Aurukun bauxite project in the northeastern state.
Aluminum Corp of China (Chalco) in 2010 ended an accord with the state government to develop the mine in the Cape York Peninsula after aluminium prices fell. The project cost was estimated at A$3 billion (HK$21.71 billion) at the time.
"The Queensland government will now assess each proposal keeping in mind the project must be delivered at no cost or risk to the state and must meet strict environmental conditions," Acting Premier Jeff Seeney said yesterday in a statement. "The government will now work towards a final decision on a preferred proponent by the end of the year."
Rio Tinto and Chalco have withdrawn from the bidding process, the government said in the statement. Cape Alumina Consortium, another shortlisted bidder, did not submit a proposal by a September 13 deadline, it said.
Mining companies have been seeking to cut their expenses as commodity prices decline, and are focusing on the lowest-cost projects. Refining bauxite from Aurukun at an existing refinery in Australia or overseas would ensure the project was more competitive.
Australian Indigenous Resources is a Chinese consortium made up of Hong Kong-listed APAC Resources and Aust-Pac Capital. Cape Alumina Consortium included Australia-listed Cape Alumina, commodity trader Noble Group and Qube Bulk.
