Chalco, the world's second-largest producer of aluminum, may sign a US$2.4 billion bauxite mining deal with indigenous groups in Queensland's northern Arukun region. In what may become one of China's most significant mining investments abroad, Chalco won tender to develop the bauxite site while Queensland
committed to spending US$246 million to develop the region's transport
infrastructure and add a bauxite loading facility, the Financial Times reported. Chalco is expected to conduct further feasibility and environmental impact studies before moving forward with a mine that is expected to yield about 6.4 million tons annually. The deal was still conditional on subsequent negotiations with local aboriginals. Chalco won the original tender after an 18-month bidding process. The indigenous land use agreement covers issues such as royalties and environmental protection.
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