Cape York focused emerging bauxite company Cape Alumina Ltd
(ASX:CBX) says an assessment has found its Pisolite Hills bauxite mine and port project in western Cape York, QLD will boost economic activity by $1.2 billion and create 1,700 jobs over the mine’s 15 year life.
The Economic Impact Assessment estimated that construction costs of $380 million are expected to result in flow-on activity in the economy of $771 million, including about $416 million in Far North Queensland.
The report indicated that the development would also make a $342 million contribution to Queensland’s Gross State Product and a $201 million contribution to the Gross Regional Product during construction of the mine.
Cape Alumina says when the mine reaches its target production capacity of 7 million tonnes a year, the project will boost the Gross State Product by $118 million and Gross Regional Product by $58 million a year.
Managing director Paul Messenger says the report confirms that the Pisolite Hills project will be a boon for the Queensland economy.
Construction on the project is expected to be carried out between 2012 and 2013 with bauxite production starting soon after commencement of construction.
Dr Messenger also says that the report showed that the project is economically viable provided that access to the Pisolite Hills bauxite resource is not adversely impacted by the QLD Government’s proposal to declare the Wenlock River Basin a wild river under its Wild River legislation.
Cape Alumina posted a loss for fiscal 2009.
