China Aluminum's chief representative in Australia, Wang Wenxuan, said on the 2nd that the company completed the feasibility study of investing 2.2 billion US dollars to purchase Australian bauxite, and is currently waiting for the approval of the board of directors in order to propose a final offer. This project has become one of the larger investment projects undertaken by Chinese companies overseas.
Comprehensive Foreign Power reported on June 2 that China Aluminum’s chief representative in Australia, Wang Wenyu, said that the company completed a feasibility study on a US$2.2 billion purchase of a bauxite mining right in northeastern Australia, and studied the findings with China Aluminum in March. The provisional tender submitted to the Queensland state government is 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 bid is a tender offer received by the Queensland Provincial Government, which gives the company the right to conduct pre-feasibility study and submit a tender offer before the end of the month. However, after a tornado hit the Cape York Peninsula in Queensland in April, Chalco was allowed to extend the deadline for submitting a tender offer to the end of June because of the tornado's delay in pre-feasibility research.
Wang Wenxi 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 tender offer to the Queensland authorities in the coming weeks.
If the Queensland Provincial Government accepts the offer from Chinalco, Chalco will then embark on an estimated one-and-a-half-year feasibility study, which may become one of the larger 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.
Steven Hodgson, CEO of the Australian business recently appointed by Rusal, also declined to comment on 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 and it is currently pressing Hope to get the Aurukun project back on track.
Concerns about 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.
Comprehensive Foreign Power reported on June 2 that China Aluminum’s chief representative in Australia, Wang Wenyu, said that the company completed a feasibility study on a US$2.2 billion purchase of a bauxite mining right in northeastern Australia, and studied the findings with China Aluminum in March. The provisional tender submitted to the Queensland state government is 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 bid is a tender offer received by the Queensland Provincial Government, which gives the company the right to conduct pre-feasibility study and submit a tender offer before the end of the month. However, after a tornado hit the Cape York Peninsula in Queensland in April, Chalco was allowed to extend the deadline for submitting a tender offer to the end of June because of the tornado's delay in pre-feasibility research.
Wang Wenxi 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 tender offer to the Queensland authorities in the coming weeks.
If the Queensland Provincial Government accepts the offer from Chinalco, Chalco will then embark on an estimated one-and-a-half-year feasibility study, which may become one of the larger 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.
Steven Hodgson, CEO of the Australian business recently appointed by Rusal, also declined to comment on 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 and it is currently pressing Hope to get the Aurukun project back on track.
Concerns about 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.