Chalco, the Chinese Aluminum company has pulled out of a proposed project at Aurukun in north Queensland. Chalco is the world’s largest producer of alumina and this was to be its first investment in Australia.
Chalco chief executive Xiong Weiping said that the global aluminum industry had deteriorated significantly since the development agreement for the bauxite mine at Aurukum was signed in March 2007, so they allowed their project to lapse.
The proposed bauxite mine at Aurukun was awarded to Chalco on condition of its building a $2.2 billion refinery at Abbot Point near Bowen, south of Townsville.
Mr. Weiping also said that Chalco looked forward to discussing new development and investment options with respect to the Aurukun resources. Chalco also looked forward to new investment opportunities in the resources sector in Australia and Queensland.
Treasurer Andrew Fraser says the State Government remains committed to ensuring bauxite mined from Cape York is processed in Queensland. He was also disappointed at how long drawn the things at Aurukun bauxite project had become.