Chinalco announced that it will stop developing Australian mines and Australian media: due to resource tax
Today, Chinalco issued the latest announcement, in view of the signing of the Queensland Government and Chinalco Development Agreement between the company and the Queensland Government of Australia on March 23, 2007 for the Aurukun Bauxite Resources Development Project. Since then, the global aluminum industry market has undergone significant and unfavorable changes. Under the framework of the development agreement, the Oulukun project was unable to continue due to many unfavorable factors. The company has initiated active negotiations with the Queensland Government and both parties have agreed that the development agreement will be terminated by itself after the expiration date (June 30, 2010).
After the termination of the development agreement, the parties agreed to continue to explore other ways of developing Aurukun bauxite resources.
It is reported that in March 2007, Chinalco was the right to develop this project in the fierce competition of many internationally renowned companies. According to the plan at the time, Chinalco plans to build an annual output of 2.1 million tons on the east coast of Queensland. The alumina plant and 10 million tons of bauxite mines and related facilities have a total investment of about A$3 billion.
However, in mid-June this year, the Australian media broke the news that Chinalco would have to shelve this bauxite project because the Australian government plans to levy a resource super-profit tax, but at that time Chinalco denied the news.
Yesterday, Chinalco closed at 6.02 yuan per share, a decrease of 1.79%.
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