63/ 0! 2
FOR PRESS NORTHERN TERRITORY DEVELOPMENT OF GOVE
BAUXITE DEPOSITS
Statement by the Prime Minister
Tne Prime Minister announced today that, following
negotiations conducted by the Minister for National Development,
Senator Sir William Spooner, and the Minister for Territories,
Mr. Hasluck, the Government had approved the issuing of special
mineral leases to the Gove Bauxite Corporation over bauxite
deposits in the Gove Peninsula of Arnham Land, Northern
Territory, The leases would be subject to conditions requiring
the construction of an alumina plant with an annual capacity of
not less than 500,000 tons. The plant, when completed, would
cost in the vicinity of œ L45m., provide direct employment for
about 800 operatives, support a population of about 3,000 and
yield export income at the rate of œ 1241mo per anm-ajmo
In this venture Gove Bauxite Corporation would be
associated with the Pechiney Company of France, the largest
producer of aluminium in E. arope and the fifth largest in the
wcrldo In due course, on application, the leases would be
transferred to an Australian subsidiary of Pechineyo
The conditions of the leases, which cover an area of
about 57 square miles and are for a period of 42 years, with
a right of renewal, require the lesee to make an immediate
stor;, on the mining and export of 10m, tons of bauxite and
to carry it out within a period of 18 years. This operation,
which will include the construction of a port, will involve
an immediate expenditure of about œ 2-nm,
The lessee will be required within three years after the
granting of the leases to incur expenditure of not less than
œ 300,000 in carrying out further exploration of the leased
area and otherwise assessing the economic feasibility of
the construction of an alumina plant of not less than 500,000
tons annual capacity. The lessee will also be required to
submit within three years after the granting of the leases a
plan acceptable to the Government for the development of the
leased areas, including the erection of the alumina plant and
to complete such plant by the end of 1970o
Failure to comply with these conditions render the
leases liable to forfeiture.
The Minister for Territories will accord the lessee
ancillary rights to enable it to establish the facilities
needed on its project such as harbour works and loading
facilities, roads, railways, town site and to obtain its
requirements of water, building materials, etc0 / 2
S2
Gove Bauxite Corporation Ltd. was granted a proOpecting
right over the area in July, 1961, with the right to apply
for leases if it proved the exsitence of sufficient bauxite
to enable 10m. tons of bauxite to be mined for export and
the existence of further deposits sufficient to justify
consideration of the establishment of an alumina plant
for treatment of the bauxite on the spot,
The Corporation fulfilled its obligations under the
permit within the stipulated time.
The Prime Minister said that this project represented
a further major step forward in the Government's efforts
to develop the Northern Territoryo In addition to the
direct employment providod by it,. its influence will
extend to other sections of the Northern Territory economy.
As the area over which mineral leases are to be
granted falls within the Arnham Land aboriginal reserve,
the bauxite mined will attract double the normal rate of
royalty, the proceeds of which are to be paid into a trust
fund for the general benefit of aborigines in the Torritory.
The deposits covered by the leases referred to in
this ctatement are in what is known as the " Gove Perimeter".
An adjacent lease, Special Minerals Lease \ Nol, is at present
held by British Aluminium
SCANBERRA February 1.7, 1963 PM.