THE far north Kimberley region could become a major bauxite producing area, with Queensland miner Aldoga Minerals confirming it has applied for several leases in the region.
THE far north Kimberley region could become a major bauxite producing area, with Queensland miner Aldoga Minerals confirming it has applied for several leases in the region.
The move comes at a sensitive time because the Western Australian Government is this week receiving advice on a proposal by Rio Tinto, Alcoa Australia and AngloGold to retain control of 370 million tonnes of untapped bauxite deposits at the Mitchell Plateau the consortium, called the Mitchell Plateau JV, has controlled for 30 years.
The JV’s grip on the Mitchell Plateau deposits officially ended at the end of 2003 when the 30-year-old Mitchell Plateau Agreement Act 1971 expired.
However, the Government gave the partners a reprieve, asking them to prepare a strategy outlining a plan for the deposits by the end of February 2004.
It was rumoured that the JV was going to abandon the Mitchell Plateau deposits, however, it is now understood it wishes to retain the deposits.
While Aldoga has denied it wants the Mitchell Plateau deposits, it has sought three nearby exploration licences with bauxite prospects at Mt Leeming, West Kalumburu and Poompangala Hill.
It is understood Aldoga, which is constructing an ambitious $2 billion alumina smelter in Queensland, has aggressive exploration plans for its WA ground, planning to make a significant investment in an independent feasibility study this year.
Aldoga, which is backed by Russian alumina giant RusAL and Chinese interests, has also committed to constructing an alumina refinery in the State if it proceeds to mine any of the WA tenements.
Aldoga managing director John Benson confirmed Aldoga’s “aggressive” plans for WA saying world demand for Alumina had encouraged it to look at building a second refinery.
“Our presentation to government is if we build a mine in Western Australia we will also build a refinery in Western Australia,” Mr Benson told WA Business News.
“The world market, or rather the demand, is big enough to support a lot more than one or two refineries around the globe.
“So it is not one or the other. We’ve got one project going in Western Australia and we have one project in Queensland.”
There has been speculation that Aldoga has been pressuring the Government to relinquish the Mitchell Plateau JV’s leases tied up with the State Agreement, however Mr Benson denied going after the ground.
“I think [it has been] implied we were going after the Mitchell Plateau. That’s not correct,” Mr Benson said.
“Our applications have been accepted by the mines department and we are going through the normal process now of checking them out.”
“We recognise and respect [the Mitchell Plateau JV’s] leases, but [our WA tenements] were unpegged ground that have inferred attractive bauxite leases on them.”
However, the WA Department of Industry and Resources this week confirmed that in mid 2003, Aldoga expressed an interest to the Government to develop the Mitchell Plateau bauxite resource if the current Mitchell Plateau JV relinquishes or loses its rights over the area.
A spokesman for the Mitchell Plateau JV would not confirm the JV’s intention for the deposits but said it had submitted a strategy it hoped would meet the Government’s expectations.
“We have worked with the department in putting [a planning strategy] together and now we really need to wait and see how government responds to that,” the spokesman said
What remains unknown is whether the strategy includes a proposal to develop the area.
The Government has confirmed that a number of unnamed parties interested in the deposit, including Russian interests, are pressuring it to release the land.
Mr Brown was in China and could not be reached for comment at the time of printing, however, his spokesman said the minister had received the Mitchell Plateau JV’s proposal and, as “the stakes are fairly high”, would take advice on the matter before making any decisions.
Previously, Mr Brown gave an indication that a resolution was close, saying he would like to see it resolved, “one way or another” by the end of February.
“State agreements are not there for land banking, [they are drawn up] for the purpose of developing areas.” Mr Brown told WA Business News in January.
Parts of the Mitchell Plateau, including Aldoga’s ground have been subjected to Native Title claims by several groups.
However, at least one claim is uncertain at the moment due to funding difficulties its representatives, the Kimberley Land Council is experiencing.
“Our presentation to government is if we build a mine in Western Australia we will also build a refinery in Western Australia.”
- John Benson
