In accordance with MetroCoal’s intentions outlined in its Bidders Statement MetroCoal has commenced, through the Board and Management of Cape, to refocus activities on the planning and evaluation of the Bauxite Hills Project and support a submission to the Queensland Government to develop the Aurukun bauxite deposit.
MetroCoal has also assisted Cape to reduce costs by eliminating duplication of tasks through the amalgamation of the administrative functions of both companies. Further savings are anticipated through sharing office accommodation and other services.
Regional Planning Interests Act 2014
On Friday 13 June the Queensland Government commenced the Regional Planning Interests Act 2014 by proclamation and also made the Regional Planning Interests Regulation 2014. This legislation establishes the approval process for resource activities in areas of regional interest.
Maps outlining the Regional Interests Areas for the Cape York Region – including Strategic Environmental Areas (SEAs) - were incorporated into the Regulation ahead of the release of the Cape York Regional Plan.
Importantly, the Cape York Regional Interests map confirms there is no impact to any of Cape Alumina’s Bauxite Hills tenements or the proposed mine and port project area. This proclamation removes any uncertainty regarding future land conflicts and allows Cape to focus on the development of the Bauxite Hills project.
Bauxite Hills Project
The Bauxite Hills ASX Release dated 6 December 2013 contained, inter alia, the following details on the Bauxite Hills Project:
“The proposed Bauxite Hills integrated mine and port project is located approximately 95 kilometres north of Weipa on western Cape York, Queensland, within the bauxite plateau between the Ducie and Skardon River and just five kilometres south-east of the existing port* at Skardon River.
Cape has advised that the resources at Bauxite Hills have low strip ratios and are very shallow, free-digging deposits. They are located close to coastal waters and international shipping routes, and have a high alumina content when low bauxite to alumina rates, which mean lower shipping costs and lower overall refinery input costs compared to bauxite deposits outside the Weipa region.
The assay results from the project’s BH1 area have indicated the presence of two types of bauxite – an upper layer of mixed bohermite-trihydrate bauxite (MBT) and an underlying layer of low monohydrate bauxite (LMB). The LMB product is expected to be suitable for refineries operating at low temperature.”
CBX Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
