Aurukun bauxite mine to give indigenous people better economy and employment

Business and community leaders are describing the Queensland Government's call for fresh expressions of interest to mine rich bauxite deposits at Aurukun on Cape York as giving the indigenous people of the region new hope, prosperity and jobs.

The $1 billion mine has the potential to employ 700 people during construction and up to 600 during operations. The successful applicant will not have to build an alumina refinery, which the last successful tenderer, Chinese aluminium giant Chalco, was unable to commit to.

The Government has opened an Expressions of Interest process for the development rights to the bauxite resource closing on February 13 next year.

A short list of five proponents will be selected and the successful company chosen by the end of 2013. The Aurukun Shire Council, the Queensland Resources Council, Advance Cairns, the Cairns Chamber of Commerce and Cape York Sustainable Futures have applauded the decision while environmentalists are opposed.

Deputy premier Jeff Seeney said the Government was going to the open market to find proponents with the capability, capacity and experience to develop a bauxite mine and associated infrastructure.

"The Government's key objective is to maximise the benefits and returns from the project to the Aurukun community and native title holders, as well as maximising the financial returns to the state," he said.

"We'll also ensure the project is delivered in a timely manner at no cost and no risk to the state."

Mr Seeney said the decision had the backing of the Aurukun community and traditional owners and had drawn strong corporate interest from Australia and overseas.

Member for Cook David Kempton said the mine would bring enormous benefits to the people of Aurukun," Mr Kempton said.

Earlier this year Chalco indicated that it was interested in bidding again after spending an estimated $100 million on the first bid in 2007, which it abandoned in 2011.

Despite the losses, and a statement in a report that it had no plans to continue with the Aurukun project, Chalco has remained in contact with the Queensland Government about the leases and has maintained a relationship with the Aurukun community.

But yesterday Chalco's chief Australian representative Daniel Zhou was not revealing the company's hand. Cairns Chamber of Commerce chief executive officer Deb Hancock said it provided a fresh future for the people on the Cape. Advance Cairns chief executive officer Stewart Christie said it was a welcome announcement. The Mayor of Aurukun has welcomed progress on the proposed bauxite mine site, saying the long-awaited project has widespread community support. Mayor Dereck Walpo said the development had the potential to provide long-term stability for local indigenous people as well as job opportunities.

"It's going to mean better autonomy and a better economy for the community," he told The Cairns Post yesterday. Cr Walpo said the project was vital in helping achieve his goal of zero unemployment in Aurukun.