Queensland seeks new Chalco contract
The Queensland government is seeking a new contract with Chinese aluminium producer Chalco, but may exclude a bauxite mine, which was part of the original deal.
The original agreement was meant to cover a $3 billion Chinese investment in a bauxite refinery near Aurukun on Cape York and an alumina mine near Bowen, south of Townsville. However, Chalco said in a release to the Shanghai Stock Exchange after it closed on Tuesday night that the current deal was being cancelled because it was not possible under current world prices.
Queensland Premier Anna Bligh said in North Queensland yesterday, the government was persistent in cutting a new deal with Chalco.
"While the current agreement can't stand, we will continue discussions with a view, hopefully, to signing a new agreement that might have some different characteristics," she told the ABC.
"While it is not possible for Chalco to commit, as required under the agreement, to build and operate an aluminium refinery here, they are prepared to look at possible different forms of investment."
Chalco chief executive Xiong Weiping said talks were continuing.
"We look forward to discussing new development and investment options for Chalco with respect to the Aurukun resources," he said.
A spokesman for Chalco yesterday rejected assertions that the proposed resource super-profits tax had influenced Chalco's decision, saying that while it evidently was not helpful, the issues with the project related to the international aluminium market.