Rio, Chalco spike Aurukun bid

Rio Tinto (RIO) and and China's Chalco have pulled out of bidding to mine the Aurukun bauxite deposit on Cape York, The Australian reports.

According to the newspaper, Glencore and a joint venture between entrepreneur John Benson and Hong Kong investors are now left as the remianing potential developers follwoing the withdrawal.

Queensland Deputy Premier Geoff Seeney said Glencore and the joint venture, named Australian Indigenous Resources, had submitted bids to develop the deposit.

Former Premier Peter Beattie had previously stripped French aluminium company Pechiney of the lease in 2003 and gave it to Chalco which then itself withdrew from the project.

The Australian reports a quick development of the site is unlikely given earlier indications from Glencore chief Ivan Glasenberg that he is not interested in developing new projects.