Cape Alumina Ltd. has placed its Pisolite Hills bauxite mine and port project in western Cape York under review as a result of the Queensland Government's declaration of the Wenlock River basin as a wild river area under the state's Wild River legislation.

Managing director Paul Messenger said the economic viability of the project had been materially impacted by the government's declaration.

"Our Pisolite Hills mine and port project, as it presently stands, is no longer viable - the Queensland Government's declaration of the Wenlock River Basin as a wild river area may have rendered this project uneconomic," said Messenger.

Natural Resources, Mines and Energy Minister Stephen Robertson have today announced the Wenlock as the tenth Wild River Declaration area in Queensland. The wild river area covers an expanse of 7,435 sq km and includes 13 major tributaries.

"The High Preservation Area (HPA) around Coolibah Springs means no mining will be allowed to take place within the 500 metre buffer-zone around the springs," said Robertson. "It is up to the companies to determine if they still wish to pursue mining lease applications for the remaining area they have been exploring in."

Cape Alumina does not hold mining production leases, however they have applied for a lease which is currently going through the appropriate regulatory approvals process. The mining company has exploration permits to explore for bauxite in several areas on the Cape, including Bertiehaugh Station.

Cape Alumina said the declaration of Wenlock as wild river put a significant risk to the forecast $1.2 billion economic boost and 1,700 jobs to be created by the billion dollar Pisolite Hills project.

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