Aurukun bauxite hits hurdle over the granting of preferred developer status to Glencore

Aurukun bauxite deposit has been hit with a legal challenge over the granting of preferred developer status to mining giant Glencore. This has put the future of hundreds of potential jobs at stake.

Aurukun Bauxite Developments has lodged a claim for a judicial review to the decision made under the Newman government claiming it was denied natural justice.

Mr Nick Stump, who heads the $20 billion mining company, pointed to the decision by then state development minister Jeff Seeney to open and close the bidding process in 24 hours. In court documents ABD claims that the government decision to open and close the bid process in 24 hours did not give it any chance to respond to or make a submission for the preferred developer status.

The massive deposit has been on the shelf for more than 40 years and its development would be a crucial benefit to the Aurukun region where unemployment has hit 75 per cent.

Mr Stump’s ABD has signed an indigenous Land Use Agreement with the Wik Way people in relation to the bauxite deposit. The deal would deliver about 15 per cent of the profits to the local community, the council and traditional owners.

However, the deal was signed after the government had handed Glencore the preferred proponent status.

The preferred developer status allows Glencore to apply for a mineral development licence, which is needed before the company can undertake feasibility studies and impact assessments.

A spokesman for Mines Minister Anthony Lynham said the development of the bauxite deposit would deliver genuine economic opportunities for Aurukun and other Cape York communities.