Aluminum Corp of China said its discussions over possible development of bauxite resources in Australia had ended and that it would make provisions for impairment on associated expenditures.
The Queensland government terminated the discussions, the company said late Sunday, putting an end to what promised to be Chalco's first investment in Australia.
Also known as Chalco, the top alumina and aluminium maker of China said it spent about 340 million yuan ($52.6 million) on the project, adding it would evaluate the amount recoverable and make corresponding provisions for impairment.
Chalco axed a $2.5 billion agreement in June 2010 to develop a bauxite and alumina operation in Australia as cost estimates rose and commodities demand waned. But the company said it would continue to discuss with the Queensland government possible ways to develop the bauxite resources in Aurukun.
Shares of Chalco rose 2.1 percent in Hong Kong on Monday, beating a 1.8 percent gain in the blue chip Hang Seng Index .
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