Rio Tinto (ASX:RIO) is pursuing a Queensland bauxite acquisition while facing a reported pause in some Chinese purchases of its iron ore.
Rio Tinto has agreed to acquire the Aurukun Bauxite Project in Western Cape York from a joint venture between Glencore (LSE:GLEN) and Mitsubishi (TYO:8058) subsidiary Mitsubishi Development.
Financial terms have not been disclosed. The transaction remains subject to the Queensland Government and other Australian regulatory approvals, according to Reuters.
Aurukun is held under a mineral development licence and has not received a mining lease. The acquisition would add to Rio Tinto’s existing bauxite operations in Cape York.
Glencore says the joint venture has invested in the project’s design, development, and approvals over several years. Following a review of its options, the joint venture determined Rio Tinto’s regional operations provided the project with the best opportunity for future development.
Rio Tinto says it will seek the required approvals and continue discussions with Traditional Owners if the acquisition proceeds. However, representatives of the Wik Waya people told The Australian they had not been adequately consulted about the sale.
In Western Australia, Rio Tinto and Ngarlawangga Aboriginal Corporation have signed an interim modernised agreement introducing a co-management approach for operations on Ngarlawangga Country, as reported by Mining.com.au. The agreement is unrelated to Aurukun and the Wik Waya people.
Pilbara Blend purchase pause
Separately, state-owned China Mineral Resources Group (CMRG) has reportedly instructed some Chinese steelmakers to hold off on purchases of Rio Tinto’s Pilbara Blend iron ore.
The direction comes as contract negotiations between CMRG and Rio Tinto reach a critical stage, according to Bloomberg, which cited people familiar with the matter.
The report follows a Reuters article published in August stating that CMRG had directed some mills to halt negotiations with Rio Tinto over shipments beginning in September.
The reported measures apply to some steelmakers and Rio Tinto’s Pilbara Blend. They do not represent a confirmed suspension of all Chinese purchases of the company’s iron ore.
CMRG was established by Beijing to centralise iron ore procurement. It negotiates on behalf of more than half of China’s annual import volumes, according to Wood Mackenzie estimates cited by Reuters.
Write to France Pinzon at Mining.com.au
Images: Rio Tinto
