China Aluminum Completes US$2.2 Billion to Purchase Feasibility Study of Australian Bauxite

China Aluminum's chief representative in Australia, Wang Wenyu, said that the company completed the feasibility study of investing 2.2 billion U.S. dollars in the purchase of a bauxite mining right in northeastern Australia, and investigated the results of the investigation with Chinalco to the Queensland state government in March. The submission of the provisional tender was consistent. The temporary bid was purchased from a bauxite mine in the remote Aurukun area and a 2.1 million tonne bauxite processing plant in a coastal port city. Wang Wenyu refused to comment on the location of China Aluminum's processing plant. It is reported that China Aluminum's temporary tender is the only acquisition offer received by the Queensland Provincial Government, which gives the company exclusive rights to conduct pre-feasibility study and submit the final offer before the end of the month. But after a tornado hit the Cape York Peninsula in Queensland in April, Chalco was allowed to extend the deadline for submitting a final offer to the end of June, due to a tornado delay in pre-feasibility research. Wang Wenyu said that he is currently waiting for the company's board of directors to approve the transaction. He personally expects that the board of directors will approve the transaction soon, and the company will therefore be able to submit a final offer to the Queensland authorities in the next few weeks. If the Queensland provincial government accepts the offer from Chinalco, Chalco will then begin to conduct a feasibility study for an estimated period of one and a half years. This project may become one of the largest investment projects overseas by Chinese companies. Wensheng Wang stated that Chinalco may introduce a partner to share the estimated financial burden of US$2.2 billion and provide the project with experience in conducting business locally. He pointed out that at the current tender submission stage, the company will be alone, but then the company may introduce a partner. He said that the company has not discussed any details in this regard, but is very open to attracting partners. As to whether Chinalco has received any indication of cooperation from Russian Aluminium (RAL.YY, Rusal), the world’s third-largest aluminum producer, Wang Wenjian does not admit or deny this. Rusal holds a 20% stake in the above-mentioned Queensland aluminum processing plant. Rusal’s newly appointed chief executive, Steven Hodgson of Australia, also declined to comment on reports about the Russian company’s interest in the bauxite mine in the Aurukun region. Since Canada's Alcan Inc. (AL) failed to take action before the development deadline of 1988, the Queensland Provincial Government recovered the lease from the company in 2004. At present, it is eager to Bring Aurukun back on track. Concerns over the quality of the bauxite deposits, complex indigenous issues, and the cost of building a high-energy-consuming processing plant in the current market with tight labor and equipment supply have left the original 10 potential bidders left 1 home.