Bauxite Resources signs 2.8Mt/pa off-take
[2008-12-23 17:03:34]
Bauxite Resources signs 2.8Mt/pa off-take
Bauxite Resources signs 2.8Mt/pa off-take Monday , 03 Nov 2008
Highlights
Memorandum of Understanding (MOU) signed with Chinese aluminaproducer Shanxi Wusheng Aluminium Co Ltd for the supply of itsentire requirements of up to 2.8 Mtpa of DSO bauxite from BRL'sDarling Ranges tenements (WA)
Terms of MOU include the provision of funding for capital works forthe DSO as well as direct equity interest in the form of up to 15mshares in BRL at a price to be determined
Exclusivity period of three months whereby BRL will not enter intoany further bauxite off-take agreements with other third parties
Perth-based bauxite explorer, Bauxite Resources Limited, (ASX: BAU;"BRL"), has signed a Memorandum of Understanding with Chinesealumina producer, Shanxi Wusheng Aluminium Company Limited ("ShanxiWusheng"), with the aim of finalising an agreement within threemonths to supply quality bulk bauxite Direct Shipping Ore (DSO) toChina
The core aim of the MOU is for the two companies to work togetherwith a view to delivering the first shipment of ore within 12months of signing a formal off-take agreement under the terms ofthe MOU.
In the MOU with Shanxi Wusheng, BRL is to provide up to two millioneight hundred thousand tonnes per annum of bauxite sourced fromBRL's extensive Darling Range tenements and shipped from anominated port in Western Australia. The MOU also provides forfunding of capital works to be arranged by the Chinese company forinfrastructure repayable out of supplies of bauxite, as well as adirect equity investment by way of a placement of up to 15 millionshares in BRL at a share price to be determined upon execution ofthe official contract.
BRL has agreed not to enter into any off-take agreements with otherthird parties for a period of three months, giving BRL and ShanxiWusheng an exclusive period to finalise the details of the off-takeand related capital and funding requirements. This three monthexclusivity period does not affect negotiations relating to directinvestment opportunities in BRL from third parties who may beinterested in the long-term alumina refinery stage two option,currently being investigated by the Company.
The following activities are currently being progressed by BRL andhave been defined in the MOU as the key factors required to ensurethe development of the DSO project:
§ land access arrangements and necessary approvals forthe bauxite mining operations;
§ all necessary licences and approvals for thetransport of ore to port operation and export;
§ satisfactory agreements for the authorisation andconstruction of appropriate port facilities, and;
§ completion of all necessary feasibility studies.
Chinese Bauxite Supply & Demand
Local Chinese bauxite reserves are predicted to be exhausted within10 years and the Chinese government is encouraging Chinesecompanies, in particular alumina refineries, to invest and securebauxite supplies from overseas. This coupled with the dramaticreduction of shipping freight costs significantly enhances theprospect of a start-up DSO project for BRL in the Darling Ranges.
An article in the Shanghai Daily on 24 September this year statedthat in the first seven months of 2008, China had imported 16.1million tons of bauxite, up 29.3 percent year-on-year and that dueto a widening supply gap, its reliance on imports for bauxite wasset to reach 47.3 percent in 2008 (from just 9.4 percent in 2005.)
Summary
The signing of an MOU is a significant milestone for the Companyand is further evidence of the potential to bring BRL's extensiveDarling Range tenements into production.
BRL's Chairman, Mr Luke Atkins, said the MOU provided an importantfirst step in a relationship with a Chinese off-take partner andhad justified the Company's recent meetings in China: "The factthat we have secured this MOU in these difficult times with an enduser customer is testament to the quality of our project and adirect result of the extensive networking with Chinese companiesthat the company has concentrated on this year."
"With this MOU we are very confident that we have laid thefoundations for a mutually beneficial relationship with ShanxiWusheng and look forward to continuing negotiations with them toreach an official off-take and funding arrangement in the very nearfuture," he added.
Mr Atkins also said that the work done by the Company's newlyappointed Managing Director, Mr Daniel Tenardi, has been crucial inthe fast-tracking of the project and the signing of the MOU: "Sincecoming on board in early September this year, Mr Tenardi has workedtirelessly to ensure our DSO project is brought on stream asquickly as possible and this MOU is testament to his dedicationability and enthusiasm for the project."
"Mr Chester Chen, formerly with CITIC Pacific Mining and recruitedby Mr Tenardi as Marketing and Logistics Manager has beeninstrumental in assisting Mr Tenardi in these negotiations", MrAtkins added.
As a marketing and communications expert, Mr Chen compliments theexecutive team with his experience, expertise and contacts indealing with potential Chinese DSO bauxite off-take customers.
For more information on recent developments, please refer to theSeptember Quarterly Report released to the ASX on 31 October.
- ENDS -
Released by: On behalf of:
Nicholas Read/Jason Cunningham Mr Luke F Atkins
Read Corporate ExecutiveChairman
Telephone: (61-8) 9388-1474 Bauxite ResourcesLimited
Mobile: 0419 929 046
Media Enquiries to: Or:
Mr Daniel Tenardi Mr DavidMcSweeney
Managing Director Non-ExecutiveDirector
Telephone: (+61-8) 9221 5019 Mob - 0439 399318
Bauxite Resources Limited Bauxite ResourcesLimited
Background - Shanxi Wusheng Aluminium Co. Ltd.
Shanxi Wusheng Aluminium Co. Ltd. is located in Pinglu County ofShanxi Province. It was jointly funded by Shanxi YunchengIndustries Co., Ltd., Shanxi Heyang Industries Co. Ltd., Hong KongXingrong Holdings Ltd. and Zhengzhou Coal Industry (Group) Co. Ltd.
Listed as the key project in the 11th "Five-Year Plan" by theShanxi Province Government, this alumina project is designed toproduce 800,000 tonnes/p.a of alumina with a capital investment ofsome three billion Chinese Yuan (A$646m) . The first phase - with acapacity of 300,000 tonnes/p.a. - has been in operation for over ayear. The remaining capacity is expected to be reached within ayear after the preliminary review of the environmental appraisal bythe State Environmental Administration of China.
The first phase of the project, designed by Northeast University ofChina, has introduced an advanced Bayer process and DCS automationsystem. This project is expected to reap excellent economicbenefits with a profit margin of 15%. The total investment returnperiod is 6.9 years and the annual sales are estimated to be 2.4bRMB (A$516m).
The project has the potential to create approximately 1,000 jobsand boost the development of relevant industries in the area.
Background - Bauxite Resources Limited
Bauxite Resources Limited (BRL) was launched in May 2006 toestablish itself in the bauxite and alumina industries in WesternAustralia where four of the seven Australian alumina refineries andfour of Australia's bauxite mines are located. BRL successfullylisted on the ASX on 22 October 2007 after closing its A$7.5million IPO early and oversubscribed, having previously raisedapproximately $1.3 million in seed capital.
The Company is the largest tenement holder in the Darling Rangewith approximately 7,500km2 which is the largest producing aluminaregion in the world. This area supplies approximately 18% of theworld's alumina is home to Alcoa's Huntly Mine, the largestproducing bauxite mine in the world, supplying Alcoa's Pinjarrarefinery, the second largest refinery in the world. The DarlingRange is also the site of four alumina refineries, three of theseare in the top five refineries in the world in terms of lowestoperating costs.
BRL's Darling Range tenements extend in a band from Moora in thenorth to Manjimup in the south, a distance of some 400 kilometres.In total BRL has applied for a total of 47 tenements in the threeproject areas; 44 tenements are located in the North and SouthDarling Range project areas and three tenements in the Kimberleyproject area. Three of these licenses have been granted in theNorth Darling Range Project area.
The Company is primarily focused on defining an initial sustainableeconomic bauxite resource sufficient to support a >2Mtpa directshipping bauxite project through an intensive exploration and datareview program to be undertaken in 2008/9 as Stage One. The Companyis also reviewing the opportunities for the development of analumina refinery as Stage Two in the longer term.
Bauxite ore is the primary raw material for refining into alumina,which is subsequently smelted creating aluminium.
For further information please visit: www.bauxiteresources.com.au
http://www.mineweb.net/mineweb/view/mineweb/en/page674?oid=72024&sn=Detail [2008-11-4]
Tag : bauxiteBauxite Resources signs 2.8Mt/pa off-take Monday , 03 Nov 2008
Highlights
Memorandum of Understanding (MOU) signed with Chinese aluminaproducer Shanxi Wusheng Aluminium Co Ltd for the supply of itsentire requirements of up to 2.8 Mtpa of DSO bauxite from BRL'sDarling Ranges tenements (WA)
Terms of MOU include the provision of funding for capital works forthe DSO as well as direct equity interest in the form of up to 15mshares in BRL at a price to be determined
Exclusivity period of three months whereby BRL will not enter intoany further bauxite off-take agreements with other third parties
Perth-based bauxite explorer, Bauxite Resources Limited, (ASX: BAU;"BRL"), has signed a Memorandum of Understanding with Chinesealumina producer, Shanxi Wusheng Aluminium Company Limited ("ShanxiWusheng"), with the aim of finalising an agreement within threemonths to supply quality bulk bauxite Direct Shipping Ore (DSO) toChina
The core aim of the MOU is for the two companies to work togetherwith a view to delivering the first shipment of ore within 12months of signing a formal off-take agreement under the terms ofthe MOU.
In the MOU with Shanxi Wusheng, BRL is to provide up to two millioneight hundred thousand tonnes per annum of bauxite sourced fromBRL's extensive Darling Range tenements and shipped from anominated port in Western Australia. The MOU also provides forfunding of capital works to be arranged by the Chinese company forinfrastructure repayable out of supplies of bauxite, as well as adirect equity investment by way of a placement of up to 15 millionshares in BRL at a share price to be determined upon execution ofthe official contract.
BRL has agreed not to enter into any off-take agreements with otherthird parties for a period of three months, giving BRL and ShanxiWusheng an exclusive period to finalise the details of the off-takeand related capital and funding requirements. This three monthexclusivity period does not affect negotiations relating to directinvestment opportunities in BRL from third parties who may beinterested in the long-term alumina refinery stage two option,currently being investigated by the Company.
The following activities are currently being progressed by BRL andhave been defined in the MOU as the key factors required to ensurethe development of the DSO project:
§ land access arrangements and necessary approvals forthe bauxite mining operations;
§ all necessary licences and approvals for thetransport of ore to port operation and export;
§ satisfactory agreements for the authorisation andconstruction of appropriate port facilities, and;
§ completion of all necessary feasibility studies.
Chinese Bauxite Supply & Demand
Local Chinese bauxite reserves are predicted to be exhausted within10 years and the Chinese government is encouraging Chinesecompanies, in particular alumina refineries, to invest and securebauxite supplies from overseas. This coupled with the dramaticreduction of shipping freight costs significantly enhances theprospect of a start-up DSO project for BRL in the Darling Ranges.
An article in the Shanghai Daily on 24 September this year statedthat in the first seven months of 2008, China had imported 16.1million tons of bauxite, up 29.3 percent year-on-year and that dueto a widening supply gap, its reliance on imports for bauxite wasset to reach 47.3 percent in 2008 (from just 9.4 percent in 2005.)
Summary
The signing of an MOU is a significant milestone for the Companyand is further evidence of the potential to bring BRL's extensiveDarling Range tenements into production.
BRL's Chairman, Mr Luke Atkins, said the MOU provided an importantfirst step in a relationship with a Chinese off-take partner andhad justified the Company's recent meetings in China: "The factthat we have secured this MOU in these difficult times with an enduser customer is testament to the quality of our project and adirect result of the extensive networking with Chinese companiesthat the company has concentrated on this year."
"With this MOU we are very confident that we have laid thefoundations for a mutually beneficial relationship with ShanxiWusheng and look forward to continuing negotiations with them toreach an official off-take and funding arrangement in the very nearfuture," he added.
Mr Atkins also said that the work done by the Company's newlyappointed Managing Director, Mr Daniel Tenardi, has been crucial inthe fast-tracking of the project and the signing of the MOU: "Sincecoming on board in early September this year, Mr Tenardi has workedtirelessly to ensure our DSO project is brought on stream asquickly as possible and this MOU is testament to his dedicationability and enthusiasm for the project."
"Mr Chester Chen, formerly with CITIC Pacific Mining and recruitedby Mr Tenardi as Marketing and Logistics Manager has beeninstrumental in assisting Mr Tenardi in these negotiations", MrAtkins added.
As a marketing and communications expert, Mr Chen compliments theexecutive team with his experience, expertise and contacts indealing with potential Chinese DSO bauxite off-take customers.
For more information on recent developments, please refer to theSeptember Quarterly Report released to the ASX on 31 October.
- ENDS -
Released by: On behalf of:
Nicholas Read/Jason Cunningham Mr Luke F Atkins
Read Corporate ExecutiveChairman
Telephone: (61-8) 9388-1474 Bauxite ResourcesLimited
Mobile: 0419 929 046
Media Enquiries to: Or:
Mr Daniel Tenardi Mr DavidMcSweeney
Managing Director Non-ExecutiveDirector
Telephone: (+61-8) 9221 5019 Mob - 0439 399318
Bauxite Resources Limited Bauxite ResourcesLimited
Background - Shanxi Wusheng Aluminium Co. Ltd.
Shanxi Wusheng Aluminium Co. Ltd. is located in Pinglu County ofShanxi Province. It was jointly funded by Shanxi YunchengIndustries Co., Ltd., Shanxi Heyang Industries Co. Ltd., Hong KongXingrong Holdings Ltd. and Zhengzhou Coal Industry (Group) Co. Ltd.
Listed as the key project in the 11th "Five-Year Plan" by theShanxi Province Government, this alumina project is designed toproduce 800,000 tonnes/p.a of alumina with a capital investment ofsome three billion Chinese Yuan (A$646m) . The first phase - with acapacity of 300,000 tonnes/p.a. - has been in operation for over ayear. The remaining capacity is expected to be reached within ayear after the preliminary review of the environmental appraisal bythe State Environmental Administration of China.
The first phase of the project, designed by Northeast University ofChina, has introduced an advanced Bayer process and DCS automationsystem. This project is expected to reap excellent economicbenefits with a profit margin of 15%. The total investment returnperiod is 6.9 years and the annual sales are estimated to be 2.4bRMB (A$516m).
The project has the potential to create approximately 1,000 jobsand boost the development of relevant industries in the area.
Background - Bauxite Resources Limited
Bauxite Resources Limited (BRL) was launched in May 2006 toestablish itself in the bauxite and alumina industries in WesternAustralia where four of the seven Australian alumina refineries andfour of Australia's bauxite mines are located. BRL successfullylisted on the ASX on 22 October 2007 after closing its A$7.5million IPO early and oversubscribed, having previously raisedapproximately $1.3 million in seed capital.
The Company is the largest tenement holder in the Darling Rangewith approximately 7,500km2 which is the largest producing aluminaregion in the world. This area supplies approximately 18% of theworld's alumina is home to Alcoa's Huntly Mine, the largestproducing bauxite mine in the world, supplying Alcoa's Pinjarrarefinery, the second largest refinery in the world. The DarlingRange is also the site of four alumina refineries, three of theseare in the top five refineries in the world in terms of lowestoperating costs.
BRL's Darling Range tenements extend in a band from Moora in thenorth to Manjimup in the south, a distance of some 400 kilometres.In total BRL has applied for a total of 47 tenements in the threeproject areas; 44 tenements are located in the North and SouthDarling Range project areas and three tenements in the Kimberleyproject area. Three of these licenses have been granted in theNorth Darling Range Project area.
The Company is primarily focused on defining an initial sustainableeconomic bauxite resource sufficient to support a >2Mtpa directshipping bauxite project through an intensive exploration and datareview program to be undertaken in 2008/9 as Stage One. The Companyis also reviewing the opportunities for the development of analumina refinery as Stage Two in the longer term.
Bauxite ore is the primary raw material for refining into alumina,which is subsequently smelted creating aluminium.
For further information please visit: www.bauxiteresources.com.au
Source: 沱沱网
Keywords:Industrial Supplies
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