Chalco postpones Bowen Alumina Refinery indefinitely

Whitsundays Online

Chalco has postponed its decision on the A$2.2 billion alumina refinery in Bowen because there is still uncertainty in the market, The Australian and Bloomberg are reporting, citing the company.

The decision on developing the Bowen refinery was due last month, and now won’t be made this year, the The Australian said, citing Dan Foo, head of the Aurukun Bauxite mine study, the feeder to the refinery.

The Australian quoted Mr Foo; "It may take some years for the alumina market to recover to levels it was at before the global financial crisis."

So, will this have an effect on the 'going price' of the Abbot Point Terminal?

Sourced from Bloomberg and The Australian
Map

Chalco Alumina Refinery postponed?

Whitsundays Online
Sourced from The Australian and Bloomberg

Chalco plans to complete a feasibility study on an alumina refinery at Abbot Point (Map), however, depressed demand for alumina makes early construction of a new refinery unlikely, and maybe never.

The Australian has reported that work on the study is on schedule and will be concluded in accordance with a commitment to the Queensland state government, quoting a spokeswoman for Chinalco, as the state-owned company is known. "Chalco is committed to honouring its undertaking to the Queensland government to complete the feasibility study into the establishment of a bauxite project at Aurukun," she said. "The feasibility study is thorough and on schedule, and no investment decision will be made until it has been completed."

The Australian quoted a spokesman for Queensland's Department of Infrastructure and Planning ; "Chalco has confirmed that its priority is to complete the feasibility study for both the mine and refinery at Bowen later this year," he said. "The company will then be able to inform the Queensland government of their conclusions." An analyst, who did not want to be named, said that while the focus for Chalco was now back on a refinery at Bowen, market conditions meant construction was unlikely to begin soon.

Editors note : If the Chalco refinery at Abbot Point (Bowen) was to be cancelled. will this have an effect on the value of the Abbot Point Terminal, proposed to be sold off by the QLD Government in the recent budget?

Full story at The Australian and Bloomberg

Map