MASSIVE AURUKUN PROJECT MOVES TO NEXT STAGE

Development of the massive Aurukun bauxite project passed another milestone today when Premier Peter Beattie and Deputy Premier Anna Bligh announced that Chalco - the Aluminium Corporation of China Limited - has been awarded Preferred Developer status.

The status is subject to satisfactory resolution of key conditions in the Development Agreement with the State and the conclusion of an Indigenous Land Use Agreement with the Wik and Wik-Way people of Aurukun.

In the presence of Mr Neville Pootchemunka, Mayor of Aurukun Shire, and Mr Liang Zhongxiu of Chalco, Mr Beattie said: ”The announcement is a major milestone for the project and for the Government.

“It marks the end of the international competitive bidding process in which 10 bidders, representing most of the major players in the world aluminium industry, investigated the opportunity for an integrated mine and mineral processing development in Queensland.”

“Preferred Developer status gives Chalco exclusive rights to complete agreements with the State and indigenous parties and then to undertake a full feasibility study on the mine and the refinery.”

“Ultimate project commitment by Chalco will be subject to the satisfactory completion of its $40 million definitive feasibility study over the next two years.

“During the early part of the feasibility study, Chalco is expected to determine the preferred site for a $2.2 billion alumina refinery. Current sites under consideration are Gladstone, Bowen and Townsville.

“The Government understands the challenging nature of this project and I have asked Ross Rolfe, the Co-ordinator-General, to head a negotiating team to resolve all outstanding issues, including the principles for common user infrastructure support, with Chalco as a matter of priority.”

Ms Bligh said: “Chalco’s Project Proposal represents an initial capital investment of almost $3 billion - an investment that will enable Chalco to produce 2.1 million tonnes of alumina each year and to export 25 per cent of its annual bauxite production to China.

“The company has also mooted an expansion of the alumina refinery as well as an interest in constructing an aluminium smelter in Queensland.”

“This project has enormous job-creation potential in regional Queensland.

“Up to 700 construction jobs will be created at the mine site at Aurukun and about 1,600 construction jobs at the refinery site in Queensland.

“Once operational, the project will generate about 600 full time jobs.

“Right from the start, the Queensland Government’s objective in partnership with the indigenous community has been to identify an organisation with the capacity and willingness to develop and add value to the Aurukun Bauxite Resource and to do it within a reasonable timeframe.

“Any successful bidder also had to address the concerns and aspirations of the Aurukun community with a view to delivering agreed economic social and financial benefits.

“The native title holders, the Aurukun Shire Council and the Aurukun community have played an important role and made a valuable contribution to the Aurukun Project.

“We appreciate the goodwill and spirit of co-operation shown by members of the Aurukun community.”

Mr Pootchemunka said “This project has the capacity to bring about major changes at Aurukun and there will need to be on-going discussions and negotiations between Chalco, the State and the Aurukun people during the next phase to ensure that the full benefits are captured by the community.”

Mr Beattie thanked Chalco for demonstrating a high level of commitment to achieving project outcomes and for continually emphasising the need to fast track the timing for the $3 billion development in Queensland.

Contact: 3224 4500

September 15, 2006.