Chalco Officially Signs Australian Aurukun Project Agreement

Chalco officially signs Australian Aurukun project agreement

The Aluminum Corp. of China Ltd. (Chalco) has won the bid for Australia's Aurukun bauxite project and signed a final agreement with the Queensland government on Friday, according to a statement released by the Queensland government.

The agreement was signed by Chalco's president Xiao Yaqing and Queensland acting-Premier Anna Bligh and witnessed by China's vice-Premier Zeng Peiyan.

The project has a construction cost of AUD 3 billion ($2.41 billion) and is designed to extract 7.5 million tons of bauxite and refine 2.1 million tons alumina per annum.

The mine is located in the remote Cape York area of Queensland and contains estimated bauxite reserves ranging from 500 million tons to 650 million tons.

Chalco joined the bidding campaign for the Aurukun project in September 2005 and edged out competitors BHP Billiton, Xstrata, Comalco Aluminium, and Alcoa and Alcan. Chalco won the mining rights in March last year.

[source: Interfax China Metals, 30 March 2007]