Australian Bauxite Limited (ABx) announced its first sale from its Bald Hill Mine in Tasmania. The initial sale is for 5,000 metric tons, and delivery is planned in the final week of April.
ABx told Tasmania’s The Advocate that the unnamed customer was planning a second shipment of between 30,000 and 40,000 metric tons within two months, once stockpile sites at the receiving port are approved.
The firm has been attempting to sell the 120,000 metric tons of bauxite they extracted from their mine in Campbell Town, Tasmania, last year. AB had a sale lined up with a Chinese buyer for the Bald Hill mine bauxite until December, when the aluminium market fell, taking bauxite prices with it.
“This is a significant step forward by ABx and is just reward for our supportive shareholders, brokers and advisers,” explained ABx in a press release. “These sales are part of a resilient marketing plan developed by COO, Leon Hawker and Logistics Manager, Paul Glover, both of whom have more than 40 years of senior experience in commodities marketing. ABx conducted test work during 2014 and 2015 to achieve cement and fertiliser industry technical specifications and can now sell into all 3 bauxite markets at the best prices and terms available. This sale into the cement market delivers our budgeted profit margin in stark contrast to the metallurgical market which is suffering from short-term weakness.” (Emphasis in original.)
The firm went on to explain its business plan going forward.
“ABx continues with its plan to use sales revenues, rather than capital raisings to fund the company’s growth, including R&D into TasTech technology which allows ABx to separate Tasmanian bauxite into the 3 constituent product-types (see Figures 2 & 3):
- High grade, ultra-cleaned metallurgical-grade bauxite for the aluminium industry;
- Cement-grade bauxite for the manufacture of certified, high specification cement; and,
- Fertiliser-grade bauxite for the fertiliser industry.”
The mine at Bald Hill is the first bauxite mine to be opened in Australia in thirty-five years.