A senior Australian Aboriginal leader says he is worried the local community will be sidelined from negotiations with a Chinese mining company.

Last year, the Chinese company Chalco won a tender to develop vast areas of the Aurukun bauxite deposit on Cape York, in far north Queensland.

Cape York leader Noel Pearson is concerned the state government will adopts laws allowing it to compulsorily acquire indigenous land.

The government says the laws would only be used as a last resort for essential infrastucture.

Mr Pearson says he is concerned the government will acquire local land and sell it to Chalco.

"If you allow this bill to enable the government to take the land for a port, or for other kinds of infrastructure that are needed for the project, you remove any capacity on the part of the community to negotiate a proper commercial deal with the company," he said.

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