Chinalco Denied Rumors Of Bauxite Withdrawal From Australia

"As the Australian government intends to levy a super profit tax on resources, the China Aluminum Limited by Share Ltd will temporarily shelve the bauxite project of 3 billion Australian dollars in Queensland, Australia."

Only three weeks before Chinalco submitted the feasibility study report, the Australian financial review yesterday released the above report, triggering the rebound of Chinalco.

"We have been following the Australian government's further measures on resource tax adjustment and will continue to consult and communicate with the Australian government in the future," he said.

Yesterday, Zhao Zhengang, director of the Overseas Development Department of Chinalco, said in an interview with the Morning Post reporter that Chinalco's bauxite project in Queensland has not been shelved and is promoting projects with the state government.

"Project is advancing".

According to available information, the Queensland aluminum mine project in Chinalco is located in the northern part of Queensland, with a resource of about 4.2 million tons.

According to the original plan, Chinalco will build an annual output of about 2000000 tons of alumina plant and 10 million tons of bauxite mines and related facilities on the east coast of Queensland, with a total investment of about 3 billion Australian dollars.

Reuters quoted yesterday as a source of information, saying that due to rising costs, oversupply of the market, and the need to build an expensive refinery in Queensland, Chinalco had made it difficult to make the project feasible, and the proposed resource tax might add frost to the plan.

An industry expert said Australia's "super profits tax" would be two times heavier than other resource intensive countries such as Canada and Brazil.

The Australian financial review said that after the Australian government announced 40% tax on mining profits in May 2nd, 8 of the eight development projects were shelved, worth 55 billion Australian dollars.

The newspaper said that Chinalco will lobby Queensland governor Anna Bligh to amend the leasing terms of the Queensland bauxite project.

The report said that if the requirements of the smelter were abolished, Chinalco would consider the exploitation of iron ore in Queensland and then pport it to China for processing, which could threaten thousands of Australian jobs.

"Because China aluminum is expanding its capacity of alumina production, China has not so many bauxite deposits. At present, the import volume is very large. If Chinalco can mine itself, of course, the cost will be much lower."

United Securities nonferrous metals analyst Wang Lixin analysis.

Wang Lixin also said that due to the large investment in Chinalco, the revenue from the completion of the project has become a key issue, but in the long run, the impact is great, and in the short term, it has little impact.

Australian Prime Minister raises 40% tax rate

According to Xinhua overseas financial report, Australian Prime Minister Kevin Rudd yesterday reiterated that the 40% tax rate of resources tax is reasonable, and the Australian government will negotiate the details, implementation and pitional arrangements of the tax plan.

According to reports, in order to carry out the resource tax reform smoothly, Kevin Rudd has held a secret negotiation in Sydney on the 8 day of this month on the government's new resources excess profit tax and the chief executive of BHP Billiton.

Meanwhile, in Western Australia, Kevin Rudd also arranged to meet with another new resource tax critic, Fortescue Metals Ltd. CEO Forest.

Reports say Forest still intends to hold a protest rally outside the Western Australia press club when Kevin Rudd speaks.

Zhao Zhengang said yesterday that Chinalco will continue to pay attention to the Australian government's further measures on resource tax adjustment, and will maintain consultations and communication with the Australian government.

Zhao Zhengang said he believed that the Australian government would always welcome overseas investors to invest in the development, but as a company, it should pursue a mutually beneficial and win-win way of operation.

In June 9th, Chinalco A shares closed 10.29 yuan, or 2.29%, showing a slightly lower performance.