Queensland Alumina eager to explore possibilities of red mud dam project

Red mud, a byproduct of alumina refining from bauxite (the principal ore of aluminium) could be the key to creating a new industry in Gladstone that would lead to thousands of new jobs. Extracting iron ore from the waste product of aluminium to make steel is the latest idea from the group behind the long awaited Gladstone Steel Project.

But the proposal depends on whether Rio Tinto, owners of Gladstone aluminium producers, agrees to be the guinea pig for ground-breaking technology developed in Germany.

So far the directors of Gladstone Steel are yet to approach Queensland Alumina Limited. But QAL's community relations manager Jeremy Hastings says the company is willing to explore the possibilities.

The red mud represents a significant environmental burden for the aluminium industry; and Mr Hastings said he "would welcome the opportunity to understand (Gladstone Steel's) plans to address environmental, economic and regulatory matters."

Using the volume of red mud already being produced in Gladstone, the iron ore extracted could produce 2 million tonnes of steel a year.

Gladstone Steel Director Paul Sundstrom has already approached the State Government to secure $200,000 in seed funding for testing and the design of a pilot plant. The company is still awaiting the State infrastructure minister Anthony Lynham's decision.

Gladstone MP Glenn Butcher said the new direction had the support of the state government.

In a recent development it was learnt that the state MPs were in Brisbane earlier this month for parliament where Butcher pushed for the state government to hurry the project along.

Building a pilot plant, to be used to extract iron ore from the red mud produced by the alumina industry, is expected to create hundreds of jobs and kick start the steel industry in Gladstone.