PERTH (miningweekly.com) – The Queensland Department of Environment and Resource Management has extended the environmental-impact assessment (EIS) deadline on ASX-listed Cape Alumina’s Pisolite Hills bauxite mine and port project.

Cape Alumina now had until September 2011 to complete the EIS and submit it to the Queensland and commonwealth government for consideration.

Earlier this year, the bauxite miner suspended work on the Pisolite Hills EIS after the state declared the Wenlock river basin as a wild river area.

The company also started a detailed review of all its other operations in western Cape York.

MD Paul Messenger said on Friday that the additional time was needed to allow the company to complete a detailed review of its Pisolite Hills project and to understand the full impact of the Wenlock wild river declaration on the environmental investigation and reporting done to date.

“As a result of the Queensland government’s declaration of the Wenlock River basin as a wild river area, the proposed seven-million-ton a year Pisolite Hills mine and port project is no longer viable,” Messenger said.

He noted that the state government’s decision to set a 500-m high preservation area around the project area, without reference to established science and against the advice of the Department of Environment and Resource Management, might have rendered the project uneconomic in any form.

“It is therefore critical for Cape Alumina to fully review the Pisolite Hills project and evaluate other opportunities in western Cape York with the aim of restoring value to our shareholders.”

Previous studies done by Cape Alumina have indicated that the seven-million ton a year bauxite project would boost local economic activity by A$1,2-billion, and would create or sustain more than 1 700 jobs over the mine’s 15-years life.

To date, Cape Alumina has invested about A$22-million in preparing the Pisolite Hills project in western Cape York for development, which included an environmental study.

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