09:31 AEST Apr 1, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.
Perth, Australia (ABN Newswire) -
Bauxite Resources Limited (ASX: BAU) and Yankuang Corporation ('Yankuang') are pleased to announce that the exploration and refinery joint ventures officially commence today, 1 April 2011.
The exploration joint venture will explore for bauxite in BRL's Darling Range tenements. 30 tenements have been granted and a further 72 have been applied for. BRL will fund 30% of the exploration cost and Yankuang 70%. The target for bauxite discovery within one year is 60 million tonnes, and 90 million tonnes within three years.
The refinery joint venture will conduct a Bankable Feasibility Study ('BFS') for the site selection, design, construction and operation of a new alumina refinery in the south-west of Western Australia. BRL will fund 10% of the BFS and Yankuang 90%. Subject to the BFS, and subject to regulatory approval, BRL will fund 9% of the construction of the refinery and receive 30% of the alumina product. Yankuang will fund 91% of the construction and receive 70% of the alumina product. Yankuang has agreed to offtake 50% of BRL's share of alumina for the first 10 years of refinery operation in order to secure repayment of BRL's borrowings.
The Project is expected to be substantially commenced within 5 years.
Yankuang have transferred senior staff from Shandong Province in China to work in the joint venture alongside BRL staff.
About Bauxite Resources Limited:
Bauxite Resources Limited (ASX: BAU) was launched in May 2006 to establish itself in the bauxite and alumina industries in Western Australia where four of the seven Australian alumina refineries and four of Australia’s bauxite mines are located. It listed successfully on the ASX on 22 October 2007 after closing its A$7.5 million IPO early and oversubscribed, having previously raised approximately $1.3 million in seed capital. In February 2009 the Company raised a further $4.7 million on the uptake of its options issue.
The Company is the only ASX-listed bauxite explorer in the highly prospective Darling Range, and is the largest tenement holder in the Darling Range with approximately 15,000 square kilometres of prospective bauxite laterite ground. To put this into context this area is larger than East Timor and almost the size of Beijing Municipality.
The Darling Range is the largest bauxite mining and alumina producing region in the world. This area supplies approximately 18% of the world’s alumina and is home to Alcoa’s Huntly Mine, the largest producing bauxite mine in the world and Pinjara Refinery the second largest alumina refinery in the world. The Darling Range has three of the top five refineries in the world in terms of lowest operating costs.
Contact:
Paul Fromson
Chief Financial Officer/
Company Secretary
Tel: +61-8-9200-6300
Email: pfromson@bauxiteresources.com.au
