Chalco scraps $2.5b investment in Australian mine

Aluminum Corp of China (2600.HK), or Chalco, has scrapped plans to invest US$2.5 billion in an Australian bauxite and alumina project in Queensland state amid concerns over surging costs and market conditions, the Wall Street Journal reported. Chalco’s option to develop the bauxite mine and alumina refinery lapsed on Wednesday. The largest aluminum producer in China said conditions in the global aluminum industry had "deteriorated significantly" since the deal for the Arukun project was signed in March 2007. At the time, the agreement was heralded as marking a new era for Chinese investment in Australia. The Queensland government said it will discuss other development options with Chalco.