Aluminum Corp. of China Ltd., or Chalco, has put its plans on hold to invest $2.52 billion in a bauxite and alumina project in Queensland State. According to the Company the reason behind the move was the increasing costs and turbulent market conditions.

The group said that the scenario in the international aluminum industry is not positive. The conditions have "deteriorated significantly" after the Aurukun project which was signed in March 2007.

Chalco's plans to develop the projects crashed on Wednesday. The plans were to develop a mine of bauxite in the Cape York Peninsula in the far north of the state and have an alumina refinery at Bowen on the east coast of the state.

The Government is now keen to have a reworked project as there are a few probable developers in the fray. Chalco has disclosed that it is open to negotiations.

Lu Youqing, Vice President of Chalco, disclosed that the prices were too much for them and they also do not think that the project will not be successful in making much profit.

Chairman and Chief Executive of Chalco, Xiong Weiping, also revealed that the Company is keen on finding new ways to expand the Aurukun resource.