Queensland Government may have to face a legal action, as a Mining Company intending a $1.2 billion bauxite project on Western Cape York, is planning to sue the Government for ill-advising.

The Cape Alumina Company claims that with the announcement of Government's recent Wild Rivers Wenlock River, their project will be “no longer economically” feasible.

Government has been accused of misleading the Company, which on the basis of Government’s advice invested into the site and the project.

The Managing Director of the Company, Paul Messenger said that millions of dollars have been spent on the site and that even after reviewing the status it has been concluded that there is no scope of moving further with the project.

He stated that the Queensland Government apparently misguided the Company as they followed a Governmental advice that has now proved inaccurate.

The Minister and the Premier earlier said that any decision regarding the Wenlock Wild River declaration will only be concluded on the basis of science and “they rejected the science", argued Paul.

According to a Tasmanian Senator, Barnett, Government has disrespected the Senate process by proclaiming Wenlock a Wild River, earlier last week.

As a Deputy Chairman of a Senate inquiry into a private member's bill, Senator Barnett said that the bill should be thoroughly re-considered.