Aluminum Corp of China (Chinalco), the country's largest alumina and aluminum producer, plans to start construction of its Aurukun bauxite mining project in Australia at the end of 2009.

"We are now doing the feasibility study for the project. We aim to start construction by the end of next year," said Xiao Yaqing, general manager of Chinalco.

The feasibility study started at the end of 2007, and will last about two years. During the study, an environmental evaluation will also be completed, he said.

The project, located in Queensland, Australia, will include a bauxite mining project with an annual capacity of 10 million tons, as well as an alumina plant with a capacity of 2.1 million tons each year. The A$3 billion ($2.8 billion) project is the largest investment deal carried out by a Chinese enterprise in Australia to date.

Chinalco signed a mining agreement with the government of Queensland in March 2007. It then signed an agreement on land use with members from the native Aurukun community in May last year. With the two agreements, the company then won the mining license issued by Queensland in September.

Recently a delegation from the Aurukun community visited Chinalco in Beijing. They said the Aurukun project would boost business development for the local community and said it would also increase jobs and training opportunities for the locals.

The project is an important move in Chinalco's overseas development.

The company in May teamed up with Malaysia's MMC and Saudi Arabia's Binladin Group, in a joint aluminum project in Saudi Arabia.

(China Daily July 4, 2008)