Major Chinese mineral development company Aluminum Corporation of China Limited (Chalco) has announced the shelving of its Aurukun bauxite and alumina project in the north of the Australian state of Queensland, citing soaring costs and the depressed state of the aluminum market. The shelving of the project is expected to result in a total loss of RMB 340 million (US$52.5 million) to Chalco.
The previous permit for the project authorized by the Queensland government expired in June 2010. Subsequently, Chalco and the Queensland government carried on further negotiations on the project. However, the Queensland authorities have now decided to terminate the negotiations.
With few other potential developers lining up for the project, the Queensland government is open to a reworked project and Chalco has said it is open to discussing new options.