Tripartite MOU with Tianshan Aluminium, Binjour QLD
Sydney, April 2, 2019 AEST (ABN Newswire) - Emerging bauxite producer, Australian Bauxite Limited (
ASX:ABX) (ABx, ASX Code ABX) considers its Binjour Project located 115kms southwest of Bundaberg Port (see Figure 1 in link below) to be the best source of gibbsite-trihydrate (THA) bauxite in Queensland that is suitable for low-temperature alumina refineries and sweetener circuits in some high-temperature refineries.
- ABx, Rawmin & Tianshan Aluminium have executed an MoU for the sale of 0.5 to 1.5 million tonnes per year of bauxite from Binjour Project, Queensland
- Trial mining site has been selected for Binjour Project
- Contractors for Trial Mining have been selected
Since discovering Binjour in 2011-12, ABx has expanded the size of the resources and worked with landholders, local government, state government, port authorities and logistics companies to develop a viable strategy for developing the Binjour Bauxite Project. Significant progress has been made with logistical solutions to deliver bauxite onto large bulk carrier ships at the Port of Bundaberg.
Subject to satisfactory results from the planned trial mining and processing testwork at Binjour, ABx and its marketing partner, Rawmin Mining and Industries Pvt. Ltd (Rawmin) are planning to commit to project development in late 2019, commencing with a mining lease application.
Memorandum of Understanding Terms
A delegation from Tianshan Aluminium Co.Ltd (Tianshan) reviewed the Binjour project and held meetings with government and port authorities in August 2018. Negotiations progressed with a Memorandum of Understanding now finalised for the delivery of bauxite from ABx's bauxite mines in Australia and from Rawmin's bauxite mines in India to Tianshan's new low temperature refinery in southern China, which is nearing completion. The planned combined tonnage commences at 0.5 million tonnes, growing to more than 1.0 million tonnes.
Seasonal Complementation
Binjour project will be at maximum production during the Queensland Dry Season from April to November. ABx's bauxite mines in Tasmania achieve optimum production in Summer from December to May. Rawmin's bauxite mines in north-western India achieve maximum production in the Indian dry season from November to May but are restricted by the Monsoon months June to September each year.
Coordinated production and shipments from all 3 sets of mines will achieve a reliable year-round delivery to the customer of bauxite at a consistent specification.
All bauxite is gibbsite-rich trihydrate (THA) bauxite with very low content of the monohydrate alumina minerals boehmite and diaspore which require high temperature refining. These bauxite specifications in Table 1 (see link below) are ideally suited for low-temperature alumina refineries.
Bauxite Pricing
Sales will be done at market prices prevailing at the time of sale, based on a mutually acceptable price index.
Port Agreement
An MoU Agreement for access to the preferred stockpile site at the Port of Bundaberg is well advanced.
Engineering studies are in progress regarding the port stockpile, handling and shipping to ensure the port can handle the planned tonnages of bauxite from the Binjour Project without impacting negatively on any other port user.
The port MoU is expected to be concluded during April-May.
TRIAL MINING SITE SELECTED
Senior staff from ABx have recently held discussions with private landholders about access to a site where the Binjour bauxite layer occurs at surface and contains a spectrum of medium-grade bauxite grades that are suitable for conducting trial mining to assess:
1. Mineability - hardness, density in-situ, moisture, size distribution
2. Optimum method for grade control to identify and discard clay-rich layers
3. Screening performance, yield, size distribution, grade upgradeability
4. Handling characteristics, angle of repose, stockpile density
5. Trucking performance
6. Rehabilitation characteristics, regeneration rates, soil nature
Variability of grades and thicknesses of bauxite will be assessed for resource estimation purposes.
Discussions with local mining and screening contractors have succeeded in assembling the suite of equipment needed to carry out the required trial mining, grade control and screening performance testwork. ABx recruits employees locally and to work with local contractors as much as practicable.
The paramount company policy is that:
ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it.
We only operate where welcomed.
To view tables and figures, please visit:
http://abnnewswire.net/lnk/401TRQ47
About Australian Bauxite Ltd
Australian Bauxite Limited (ABx) (ASX:ABX) has its first bauxite mine in Tasmania & controls the Eastern Australian Bauxite Province. ABx's 11 bauxite tenements in Queensland, New South Wales & Tasmania totalling 662 km2 are all 100% owned, unencumbered & free of third-party royalties. ABx's bauxite is gibbsite trihydrate (THA) bauxite that can be processed into alumina at low temperature.
ABx has committed a large proportion of its expenditure into Research and Development to find ways to capitalise on the main strengths of its bauxite type which is very clean, free of all deleterious elements and partitioned into layers, nodules, particles and grains of different qualities that can be separated into different product streams using physical, chemical and geophysical methods.
ABx has declared large Mineral Resources in northern NSW, southern NSW, Binjour in central QLD & in northern Tasmania.
ABx's first mine commenced at Bald Hill near Campbell Town, Tasmania in December 2014 - the first new Australian bauxite mine for more than 35 years.
ABx aspires to identify large bauxite resources in the Eastern Australian Bauxite Province and has created significant bauxite development projects in 3 states, Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.
ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed.
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