CAPE ALUMINA LTD 
By Friday, 22 November 2013
Cape Alumina suspends work on Pisolite Hills mine and port project
The Cape Alumina Board has suspended all work on its Pisolite Hills mine and port project on western Cape York, Queensland, and will undertake a comprehensive review of all of its other operations in Queensland.
This decision has been taken as a result of the Queensland Government's announcement on Wednesday that it would ban mining over the Bertiehaugh Cattle Station and the Steve Irwin Wildlife Reserve "in perpetuity".
As a result of the Queensland Government's announcement, Cape Alumina and MetroCoal Limited have agreed that the proposed merger of the two companies will not proceed.
The Board will also review Cape Alumina's legal rights and possible avenues to challenge the
Queensland Government's decision.
The Steve Irwin Wildlife Reserve overlies a significant part of the Pisolite Hills project resource and the
Government's decision now effectively sterilises this.
Cape Alumina's Managing Director Graeme Sherlock said Wednesday was a very sad day for Queensland's mining industry and expressed concern that the decision may damage Queensland's reputation as a good place to do business.
"The decision is also disappointing for the Traditional Land Owners of the project area and the
Aboriginal people of western Cape York," Mr Sherlock said.
"We were completely surprised by this decision and expected that the future of the project would be determined through a genuine and rigorous environmental assessment process.
"Our confidence was bolstered by the Government's declaration of Pisolite Hills as a 'coordinated project' under section 26 (1) (a) of the State Development and Public Works Organisation Act 1971.
"Following the declaration we increased project expenditure and restarted work on technical and environmental studies. We planned that Pisolite Hills would be in production by 2015.
"This decision will have enormous ramifications for the mining and investment communities and has certainly elevated the sovereign and political risk profile of Queensland.
ASX release - Cape Alumina suspends work on Pisolite Hills (22 November 2013)
"The company has spent in excess of $20 million on this project, including several million dollars since we reactivated the project last year," Mr Sherlock said.
Mr Sherlock said that the Queensland Government did not need to make this decision.
"The Wenlock River, its ecosystems and their environmental values would have been protected by Cape
Alumina. Cape Alumina's proposed Pisolite Hills mine lies between 2.8 and 15 kilometres away from the Wenlock River," Mr Sherlock said.
"Cape Alumina's Pisolite Hills project was vital to the economic development of Queensland and especially western Cape York and Far North Queensland.
"The project would have benefited the Traditional Land Owners and Aboriginal people of Mapoon and other western Cape York communities providing them with a rare opportunity to gain social and economic independence and prosperity," he said.
The benefits of the Pisolite Hills mine and port project included:
