May 13 2004
Alcan Inc. and its subsidiary Alcan South Pacific Pty Ltd (Alcan) today expressed their extreme disappointment that the Queensland government has passed legislation revoking Alcan’s rights to the Aurukun bauxite reserves in northern Queensland.
"Understandably, we are troubled that our rights to the Aurukun leases have been legislated away. The fact that the government reverted to legislation as a means to enforce its position is a clear recognition of the validity of our rights and the defence that we were prepared to mount before the courts," said Michael Hanley, President of Alcan’s Bauxite and Alumina group.
"We have worked hard to demonstrate to the government that we are serious in our commitment to develop the Aurukun reserves. These efforts, combined with our exemplary track record and proven technical and financial capability to develop responsibly this important resource makes the government’s actions all the more difficult to comprehend," stated Richard Yank, President, Pacific Operations, Alcan Bauxite and Alumina.
Alcan has been involved in value-added bauxite and alumina development in Queensland for about 40 years, and is a founding partner and majority shareholder in the world’s largest refinery, Queensland Alumina Limited, at Gladstone. In April, Alcan committed AU$15 million to complete a feasibility study within two years to determine the economic viability of a bauxite mine and alumina refinery based on Aurukun bauxite.
In the context of the legislative revocation of Alcan’s rights, the Queensland government has now promised to initiate an open and transparent process for the sale of the Aurukun bauxite reserves. Alcan will evaluate this process before announcing any decision in relation to its own participation.
For more information on alumina, click here.