Photo by: Bloomberg
PERTH (miningweekly.com) – The Queensland government on Thursday tapped multinational Glencore as the preferred developer for the Aurukun bauxite deposit in Western Cape York.
In March this year, the state government deferred a development decision on the bauxite project after the remaining bidders, Glencore and Australian Indigenous Resources (AIR) failed to impress in their bids.
Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney said on Thursday that since the government’s decision in March, interest to develop the resource has remained.
“Our objective as a state government has always been clear – to improve employment, health and educational opportunities for the people of Aurukun by unlocking the economic potential of this valuable bauxite deposit,” Seeney said.
“After continuing discussions with a number of parties, the Queensland government considers Glencore is best placed in terms of both technical capability and financial strength to successfully take on this challenging development.”
Seeney noted that selecting Glencore as preferred proponent was the state’s best opportunity to see the Aurukun resource developed.
“As I have said previously, our government is determined to avoid the mistakes of the past, where companies were granted rights but were later unable to deliver on the commitments they made.”
Glencore had initially been one of the five short-listed companies pitching for the Aurukun development. Mining majors Rio Tinto and Chinalco withdrew from the race, while Cape Alumina failed to deliver a bid.
Seeney said over the coming months the state government and Glencore would work together to finalise the commercial arrangements.
“Our highest priority through this process will be that this development delivers genuine outcomes for the community of Aurukun and other Cape communities,” he said.
“Glencore has discussed an improved works schedule and has committed to milestones in the development of the deposit.”
Seeney said should a satisfactory agreement be reached, Glencore was expected to begin a feasibility study in 2015.