The Financial Review reports that Rio Tinto
(ASX:RIO)might be in talks with Chalco about using the Aurukun project in Queensland to underpin the miner’s expansion of the Yarwun refinery in the state.
Last week Rio confirmed it is looking to expand the Yarwun refinery at Gladstone in Queensland.
It’s timely considering that Chalco is looking at its development options for the Aurukun resources site after the Queensland Government and Chinalco, which owns Chalco, ended a development deal of the bauxite site, and start talks on a new agreement.
Chalco said in a statement that global conditions had deteriorated since the original deal was signed in 2007.
The Bligh government refused to change the lease terms of the Aurukun development deal, and a warning that the company must process ore from the bauxite deposit in the state if it wanted to go ahead with the lease.
Rio Tinto’s 2009 net profit was $5.4 billion.
