Binjour mining lease application will proceed. Binjour Project is fully-funded
Binjour Mining Lease Application to Proceed
Sydney, Dec 16, 2019 AEST (ABN Newswire) - Australian Bauxite Ltd's (
ASX:ABX) (A7B:FRA) Board of Directors has approved the lodgement of a mining lease application and related project strategy for ABx's flagship Binjour Bauxite Project located 115kms southwest of Bundaberg export port, central Queensland.
Key Points:
- ABx Directors and a Director of Rawmin Mining of India reviewed project plans, financial assessments, bauxite market developments and risk-factors over 3 days
- A Mining Lease Application will be lodged in early 2020, commencing with prelodgement discussions with government departments as soon as practicable
- Binjour project is fully-funded by ABx's marketing partner, Rawmin Mining of India
- Both ABx and Rawmin intend to sell 0.5 to 1.5 million tonnes per year of gibbsite-rich trihydrate (THA) bauxite grading 44% to 45% Al2O3 and 5% SiO2 which is ideal for refining into alumina by low-temperature Bayer-process refineries
- Binjour bauxite resources total 37 million tonnes - see Resources Statement. Initial production for the first 10 to 15 years will focus on high-grade zones that require little processing - see Figure 2*
- A tripartite sales MoU exists between ABx, Rawmin and Chinese aluminium producer Tianshan which needs large supplies of the Binjour-type of bauxite, starting end 2020
- ABx also has an MoU with the Port of Bundaberg to investigate the opportunity to export bauxite in bulk tonnages through the Port of Bundaberg
- Research in 2020 will study extraction of very high grade bauxite from "detrital bauxite" rubble that has shed off the Binjour Plateau to create additional high-value products
ABx considers Binjour Project to be the best source of gibbsiterich bauxite in Queensland (QLD). Unlike other QLD bauxites, Binjour bauxite is ideal for low-temperature alumina refineries being high grade, low silica & carbon-free.
Planning for 9 years
Since discovery in 2010, ABx has worked with landholders, local & state government, port authorities, operator & logistics contractors, market specialists and customers to develop an optimum strategy for the Binjour Project. The plan is to produce high-quality metallurgical-grade bauxite exported in large bulk carrier ships from the Port of Bundaberg. The plan also leaves the land better than we find it.
Project fully-funded by Rawmin Mining
ABx's marketing partner, Rawmin Mining of India has agreed to fund all pre-production and working capital costs for the Binjour Bauxite Project and will be entitled to a 50% joint venture interest in the project. ABx will be the project operator.
Indian mining decline leaves additional room for Binjour
ABx notes that due to regulatory constraints and global competition, the mining industry in India is experiencing negative growth and faces an uncertain future. Bauxite production in India has fallen from 28 million tonnes in 2015-16 to almost 19 million tonnes in 2018-19 and exports of bauxite has declined from 9 million tonnes in 2015-16 to only 0.1 million tonnes in 2018-19. The imposition of a 15% export duty additional to already high royalty rates is considered the main cause of this sudden collapse in Indian bauxite exports.
Barring a change of regulations in India, it is possible that Binjour bauxite can be sold into the large and expanding bauxite refining and aluminium production industry.
Port of Bundaberg
ABx has a Memorandum of Understanding agreement ("MoU") with the Port of Bundaberg to investigate a designated potential stockpile site and consider its potential for:
1. Stockpiling bauxite at the "MoU Block" - see location shown in Figure 3* on next page
2. Blending the bauxite to the contracted specification, and
3. To compensate for high road haulage costs, ABx seeks to load large Cape Size ships (150,000 tonnes cargo) at deep-water anchorage within Port Limits of Bundaberg Port.
ABx favours the use of Bundaberg Port because it lies well south of the Great Barrier Reef Park and is sand-bottomed from the point of loading through to international shipping lanes. ABx has worked collegiately with Bundaberg Port management and with all stakeholders in the Wide Bay-Burnett Region since 2010-11 when the discovery of the Binjour Bauxite deposit was made.
ABx favours the use of the MoU block at Bundaberg Port because trucks will not need to pass through the Port village community and keeps the bauxite well away from inhabited areas.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/EK87N1KP
About ABx Group Limited
ABx Group Limited (ABx) (ASX:ABX) is a uniquely positioned Australian company delivering materials for a cleaner future.
The three priority projects are:
- Heavy rare earths: Supplying light and heavy rare earths from Tasmania into Western supply chains
o Processing Options Analysis conducted in partnership with external experts
- Clean fluorine chemical production: Producing industrial chemicals from aluminium smelter by-product (ALCORE)
o Continuous pilot plant under construction in Bell Bay, Tasmania
- Near-term bauxite production: Mining bauxite resources for the aluminium, cement and fertiliser industries
o Agreements executed with Good Importing International for bauxite projects in Queensland and New South Wales, and $2.7 million initial payment has been received
o Approvals well advanced for DL130 bauxite project in northern Tasmania
ABx endorses best practices on agricultural land and strives to leave land and environment better than we find it. We only operate where welcomed.
| ||
|
