A new tender will open for the development of a massive bauxite mine in Queensland's western Cape York.
The tender for the new bauxite mine and alumina refinery in Aurukun had been won by Chinese company Chalco in 2007, but the deal folded on Thursday because Chalco was unable to build the required alumina refinery.
Treasurer Andrew Fraser said the government will now reassess the development conditions for the future tender.
The new tender process will commence by the end of this year.