Bauxite Resources Limited (ASX:BAU) Signs MOU With JFE Shoji Trade Corporation For DSO Bauxite Supply To Asia
Perth, Oct 6, 2009 AEST (ABN Newswire) - The Board of Perth-based bauxite explorer and developer, Bauxite Resources Limited (ASX:BAU)(PINK:BXRDF) is pleased to announce it has signed a Memorandum of Understanding (MOU) with JFE Shoji Trade Corporation ("JFEST") for Bauxite Direct Shipping Ore (DSO) supplies to Asia. The MOU is non binding and the parties will later sign a Sale and Purchase Agreement. JFEST is a Japanese Trading House and will re-sell the bauxite to certain end users in Asia. The identity of the end users is commercially sensitive and will not be disclosed pursuant to the confidentiality clauses in the MOU.
The target quantity in the MOU is 500,000 tons of bauxite by the end of 2010 calender year. The bauxite to be exported will be high total alumina content (48-49%) and low reactive silica content (1-2%), BRL is please to be shipping high grade bauxite which it expects to be well received by the refinery end users. The high quality bauxite is expected to substantially reduce the end user refinery reagent costs and other operating costs. BRL expects that these initial shipments will demonstrate the superior attributes of its bauxite, provide an excellent marketing opportunity and pave the way for long term off-take agreements for its DSO bauxite.
About Bauxite Resources Limited
Bauxite Resources (ASX:BAU) (OTCMKTS:BXRDF) was established with a substantial tenement holding in Western Australia to develop new bauxite supply for the global alumina/aluminium industry. The Company listed on the Australian Securities Exchange (ASX) in October 2007.
The Darling Range in the south-west of Western Australia (WA) is the world's largest bauxite mining and alumina refining region producing around 20% of the world's alumina. This area has mined bauxite and refined alumina since the 1960s. These industries are leaders in sustainable resource development and represent the fifth largest sector of WA's resource industry.
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