Monday, June 1, 2009

Bowen alumina refinery decision on hold for at least 2 weeks

Chalco is delaying its decision on whether to invest in the expansion of Rio Tinto's Yarwun (Gladstone) alumina refinery, as it awaits the decision from the FIRB on its proposed alliance with Rio. The Financial Investment Review Board will rule within the next 2 weeks whether it will allow Chinalco to invest $12.3 billion into Rio.

If Chalco/Chinalco are succesful in their bid to buy almost 20% of Rio, it is believed that Chalco will cancel building an alumina refinery in Bowen (Map) and instead invest in Rio's 40 year old refinery in Gladstone (Yarwun), which has a $1.8 billion expansion under construction.

Decisions by the FIRB and then Chalco's plans for Bowen are expected by the 15 June.

More on this story in The Australian
Follow up story in The Australian - Chinalco baulks at funding Rio alumina refinery
Map
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