Chalco Vies With Rio Tinto, Others for Australia Bauxite Project

  By Robb M. Stewart 
 

MELBOURNE--Aluminum Corp. of China Ltd. (2600.HK) is in the running against mining giants Glencore International PLC (GLEN.LN), Rio Tinto PLC (RIO.LN) and others to develop a big bauxite project in northeast Australia that it previously held the rights to.

The government of Queensland state said Tuesday that it had selected the three companies and two consortiums that include Asian commodities trader Noble Group Ltd. (N21.SG) and Hong Kong-listed resources investor APAC Resources Ltd. (1104.HK) to submit proposals for the Aurukun resource on the Cape York Peninsula.

Jeff Seeney, minister for state development, infrastructure and planning, said the companies have until mid-September to submit details plans for a mine. The government expects to make a decision by the end of the year, he said.

Aluminum Corp., better known as Chalco, signed an agreement with the state in 2007 to develop the site but lost the lease in 2011 when it couldn't meet a condition to construct an alumina refinery in Queensland.

The current government dropped that condition last year when it again opened Aurukun for development.

Chalco had previously said it planned to invest about 3 billion Australian dollars (US$3.07 billion) in the first phase of the project and had projected annual alumina production of roughly 2 million metric tons when output starts and bauxite production capacity that could reach 10 million tons.

Cape Alumina Ltd. (CBX.AU), which has joined with Noble and Qube Holdings Ltd. (QUB.AU), confirmed it was among the companies shortlisted by the government.

The other consortium includes APAC Resources and private investment company Aust-Pac Capital Pty. Ltd.

Write to Robb M. Stewart at [e-mail]

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