Aluminum Corp of China (Chinalco), after active negotiations with the Queensland government, announced on Thursday that its $2.2 billion Aurukun bauxite project in Australia would be automatically put to an end by June 30, 2010.

Signed by Chinalco and Queensland government on March 23, 2007, the agreement was designed for the development of the Aurukun bauxite mining and was to expire on June 30, 2010.

Due to diversified unfavorable factors, the program could not be carried on under the existing framework, said Chinalco without providing further detailed information.

Some foreign media agencies reported that a "super profit tax" of 40 percent to mining companies proposed by the Australian former Prime Minister Kevin Rudd In May 2010, was a possible block for Chinalco as well as for local mining giants.

Analysts explained that rising costs, oversupply in the aluminum market as well as the high costs of building a refining factory in Queensland could also worsen Chinalco's situation.

However, Chinalco also emphasized that it will continue to communicate with the Queensland government to work out other modes for developing the Aurukun.