MAJOR MILESTONE FOR $3 BILLION CHALCO INVESTMENT

A $3 billion bauxite project on Cape York Peninsula, regarded as the largest single foreign investment in Queensland’s history, reached a major milestone today, Deputy Premier, Treasurer and Minister for Infrastructure Anna Bligh and Mines and Energy Minister Geoff Wilson said this afternoon.

The Deputy Premier said a mineral development licence was granted to Chalco, the Aluminium Corporation of China Limited.

Ms Bligh said the licence, granted over a 40,000 hectare site on the west of the Cape, would give Chalco the green light to go ahead with a $40 million feasibility study.

“This is a major milestone for one of our most exciting projects which is expected to create thousands of skilled jobs during construction,” Ms Bligh said.

“The project includes a mine and a plant at Aurukun and a mineral processing facility on Queensland’s east coast.

“Chalco and the State Government will work with the Wik and Wik Way people to preserve their cultural heritage and at the same time, secure a prosperous future for the local community,” Ms Bligh said.

The study will be conducted over the next two years and includes a $2 million a year commitment by Chaco to the Traditional Owners of the Aurukun community.

Mines and Energy Minister Geoff Wilson said the feasibility study included mining-related investigations, geotechnical and engineering studies, and other evaluations.

“The study will also determine the preferred location for a $2.2 billion alumina refinery at Gladstone, Bowen or Townsville,” Mr Wilson said.

“Teams of leading local advisers including resource contractors, suppliers, engineers and technicians will be required for the feasibility study. It will also create job opportunities for the Aurous Community,” he said.

Mr Wilson said the granting of a licence was one of the milestones that allowed benefits to flow from the Indigenous Land Use Agreement made between the State of Queensland, Chaco, the Wik and Wik Way peoples, and the Aurukun Shire Council.”

Mr Wilson said Chalco’s decision to proceed with development of the bauxite mine and alumina refinery would be based on the results of the feasibility study.

“Before any mining can occur, Chalco has to be granted a mining lease over the bauxite deposits. This also requires consent from the Wik and Wik Way people and the Aurukun Shire Council,” he said.

The Chalco Bauxite Project mine and plant at Aurukun could produce over 6 million tonnes a year of bauxite, and the alumina refinery could produce more than 2 million tonnes of alumina a year.

Media contacts: Minister Wilson's Office 3225 1819