Alumina accord for Alwest

Press, Volume CX, Issue 32459, 20 November 1970, Page 18

Alumina accord for Alwest

(N.Z. Pres, Association—copartflhu PERTH, November 19. The Government of Western Australia and Alwest Pty, Ltd, a subsidiary of News, Ltd, of Adelaide yesterday signed an agreement for the establishment of a s2oom bauxite alumina project.

The announcement said that a final decision on when the project proceeds will be made after the company finalises its market and finance negotiations, for which a period of two years is allowed.

The agreement gives the company the right to mine bauxite in the Hotham River district, to process bauxite at a refinery to be built at Bunbury 120 miles south-west of Perth, and to export alumina through that port. The alumina plant will have an initial capacity of 200,000 tons a year. The company will also investigate the feasibility of establishing an aluminium smelter. The State Prime Minister (Sir David Brand), said the project is ad all Australian group comprising Alwest and Broken Hill Proprietary, Ltd (8.H.P.). Work on the construction [of the refinery will begin Iwithin the next two years. The agreement provides for [the mining of bauxite in an ! area initially centred at Mtl

Saddleback about 70 miles, north east of Bunbury, and the construction, at company expense of a standard narrow gauge railway. The company will contribute sl.9m towards the cost of developing the new deepwater inner harbour at Bunbury, and will also finance the cost of construction of a pipeline from Wellington Dam about 45 miles north to Bunbury. The capital cost of housing, community services and works, will be the responsibility of the company. Sir David Brand said that during the first seven years of operation Alwest would ipay the State Government a . royalty of 26.25 c a ton on all alumina produced at the I refinery and 50c a ton on all ispecial grade bauxite which. I the company mines. I At the end of that period, royalties would be set in accordance with the Mining Act regulations, but would not be less, and provision would be made to avoid discrimination against the I company.