Australian Bauxite Limited (ABx) announced yesterday the signing of a memorandum of understanding with marketing partner Rawmin Mining and Industries and Chinese metals firm Tianshan Aluminium for the sale of between 500 thousand and 1.5 million metric tons per annum of bauxite ore harvested from ABx’s Binjour Project in Queensland.
The agreement, which is contingent upon trial mining and testwork at the site, ABx and Rawmin say they will begin project development later this year by starting the process of obtaining a mining lease.
The MOU is the product of a process begun last year with a visit to Binjour by Tianshan officials and subsequent meetings with government and port authorities last fall. The bauxite mined in the deal is slated to be delivered to the firm’s new low-temperature refinery in southern China, which is under construction at present.
ABx says the agreement contemplates a total supply of between 500 thousand metric tons and 1.5 million metric tons per annum, which will be purchased by Tianshan at market prices. The bauxite mined for the deal will likely depart from the Port of Bundaberg, where studies are underway to determine the port’s suitability for such a task. ABx says a MOU for that portion of the deal is likely to be signed by the end of next month.
Manpower and equipment is being assembled at present as well, as ABx is conducting talks with local mining and screening contractors. The firm says it plans to utilize local companies for the task when possible.
Based in Sydney, ABx conducts operations in Tasmania, Queensland, and New South Wales. The firm boasts combined JORC resources of 124 million metric tons in twenty-two tenements covering almost two thousand square kilometers in Eastern Australia. Its Binjour tenement in Queensland is considered by the company to be its flagship project.