Deputy Premier announces Aurukun shortlist

The Newman Government has finalised a shortlist of five groups to progress to detailed proposals of the Aurukun bauxite resource on the Cape York Peninsula.

The Deputy Premier and the Minister for State Development, Infrastructure and Planning Jeff Seeney today announced the shortlisted groups were Aluminum Corporation of China Limited (CHALCO), Australian Indigenous Resources Pty Ltd (AIR), Cape Alumina Consortium, Glencore International AG and Rio Tinto Aluminium Limited.

Mr Seeney said the development of the Aurukun bauxite resource was essential to the creation of a vibrant economic future for the Aurukun community, native titleholders and all Queenslanders.

“The Bligh Government’s failed strategy of demanding establishment of a refinery made development of the resource uneconomic. We want to ensure the economic benefits of this resource flow back into the Aurukun community,” Mr Seeney said.

“We will see these benefits through mining jobs and improvements to infrastructure and further benefits through businesses that could be established in Aurukun to service the mine.

“The shortlist includes Australian and international companies and has been narrowed down from seven expressions of interest lodged in February.

“The successful companies will now have until mid-September to submit their detailed proposals for the mine to the government for evaluation.

“The government is working towards a final decision on a preferred proponent by year’s end.”

Mr Seeney said the commercial terms were based on the state’s key objectives for the development, namely that the project should maximise the benefits and returns from the project to the native titleholders – the Wik and Wik Way people represented by the Ngan Aak-Kunch Aboriginal Corporation (NAK) – and the Aurukun Shire Council.

“The Newman Government will also ensure the project is delivered in a timely manner at no cost and no risk to Queensland, which will mean that all parties benefit,” he said.

Mr Seeney said the government could explore the option for both a large and small-scale development that may be able to coexist given the size of the Aurukun resource.

He said the government had been working closely with the NAK and Aurukun Shire Council on the retender since coming to office and that the close working relationship would continue throughout the remainder of the competitive bid process.

“Our key objectives are to maximise the benefits and returns from the mine to the native titleholders and the Aurukun community and to maximise the financial returns to Queensland,” Mr Seeney said.

“The native titleholders and the Aurukun community have voiced their strong support for development of the resource.”

[ENDS] 23 April 2013

Media Contact: Kate Haddan – 0418 373 516 or John Wiseman – 0409 791 281

Company Biographies

Aluminium Corporation of China Limited (CHALCO)

CHALCO is China’s largest company integrating R&D, production and sale in the Chinese aluminium industry.

CHALCO is principally engaged in bauxite mining; the production and sales of alumina, primary aluminium and aluminium fabrication products; and also operates coal and iron ore businesses and trading of other non-ferrous metal products.

CHALCO holds a leading strategic position in the alumina, primary aluminium and aluminium fabrication markets in China and it has a comprehensive industry chain with good resistance to market risks. In 2011, CHALCO had total assets of USD 24.9 billion and sales revenue of USD 23.2 billion.

As a leading aluminium corporation world-wide, developing the Aurukun deposit would be within the Company’s core business.

Australian Indigenous Resources Pty Ltd (AIR)

AIR is an incorporated special purpose vehicle for the Aurukun Project.  AIR’s proposed participating shareholders (APAC Resources Limited and Aust-Pac Capital Pty Ltd) bring together a capable and experienced team to bid for the rights to develop the Aurukun bauxite resource.

APAC Resources Limited is an established natural resources investment and commodities business company listed on the Hong Kong Stock Exchange focused on natural resources.  It has significant shareholdings in various global natural resource companies including base metals, bulk commodities and energy.

Aust-Pac Capital Pty Ltd is a private investment company that has provided seed capital and advice for many developments in Cape York ranging from indigenous housing and education initiatives to the proposed underground coking coal mine at Kalpower.

Cape Alumina Consortium

The Cape Alumina Consortium brings together Cape Alumina Limited, which is a home-grown, Queensland-based company and two national and internationally recognised leaders in their fields – Noble Group and Qube Bulk Pty Ltd.

Cape Alumina Limited is Australia’s leading pure-play bauxite company. It is a Brisbane-based company that controls approximately 1,900 square kilometres of exploration tenements in western Cape York. Cape Alumina's business model is based on the establishment of an independent bauxite supply business to feed the growing market for traded bauxite into China.

Noble Group is listed in Singapore, with headquarters in Hong Kong and operates from over 140 locations, and ranked number 91 in the 2012 Fortune 500. Noble Group is a diversified natural resources supply chain manager of agricultural and energy products and metals, minerals and ores. Noble’s global operations include mining, farming, processing, ports, shipping and marketing and our supply chains ensure the smooth, long-term flow of essential commodities.

Qube Logistics Holdings Limited (ASX: QUB) is an ASX200 company with a market capitalisation of approximately $1.7 Billion. Qube employs over 4000 people nationally and has annual revenues of approximately AU$1 billion.   Qube is Australia’s largest dedicated bulk and general stevedoring operation, operating in 28 ports around Australia and has been involved in building Greenfield bulk ports and providing innovative bulk solutions to emerging miners.

Glencore International AG

Glencore International AG is a leading integrated producer and marketer of commodities with worldwide activities in the marketing of metals and minerals, energy products and agricultural products and the production, refinement, processing, storage and transport of these products. 

Headquartered in Baar, Switzerland, Glencore employs close to 3000 people in its global marketing operation in some 50 offices in over 40 countries.  In its industrial operations, Glencore employs over 58000 people in 33 countries.  Glencore has interests in various publicly listed companies including approximately 34% of Xstrata, 46.4% economic in Century Aluminium, 75.2% in Katanga Mining, and 8.8% in United Company RUSAL.

Glencore became a public company in May 2011 with a primary listing on the London Stock Exchange and secondary listing on the Stock Exchange of Hong Kong.  Glencore’s Initial Public Offering was the largest ever on the premium listing segment of the London Stock Exchange. 

Rio Tinto Aluminium Limited

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and New York Stock Exchange listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, thermal and metallurgical coal, uranium, gold, industrial minerals and iron ore.

Activities span the world and are strongly represented in Queensland with its Weipa bauxite operations and the proposed South of the Embley project on Cape York Peninsula.