Chalco Australia, the local subsidiary of the Aluminium Corp of China, has allowed the development agreement with for the Aurukun bauxite project in North Queensland to lapse.
The company said the global aluminium market had significantly deteriorated since the agreement was signed with Queensland Government in 2007, making the project no longer viable.
According to a statement released by the State Government however, both parties still remain committed to future developments.
"The Government and Chalco will allow that agreement to end but recognise their strong common interest in bringing the Aurukun bauxite resource into production for the benefit of the local indigenous community and the broader State economy,” Minister for Infrastructure Stirling Hinchcliffe said.
"The State Government and Chalco will continue to discuss new development and investment options with respect to the Aurukun resource in the light of ongoing market conditions and the strategic importance of the Aurukun bauxite deposits.
"Chalco has indicated to the State Government that it will maintain its close working relationship with the Aurukun community.”