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 robb.stewart@wsj.com
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